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Plese fill in the blanks To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential. For example: A

Plese fill in the blanks

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To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential. For example: A bond's borrows and promises to repay on the maturity date. refers to its face value and the amount of money that the issuing entity .A bond issuer is said to be in if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issue's restrictive covenants. A bond contract feature that requires the issuer to retire a specified portion of the bond issue each year is called a A bond's and under specific conditions. gives the issuer the right to call, or redeem, a bond at specific times Suppose you read an article about the Golden Gate Bridge and Highway District bonds. It includes the following information: Bridge Bonds Series A Dated 7.15.2005 4.375% Due 7-15-2055 @100.00 What is the maturity date of this bond? 7-15-2055 O 7-15-2005 If the coupon interest rate is 4.375% for the first six months and changes to a rate equal to the 10-year Treasury bond rate plus 1.3% thereafter, the bond is called a bond The contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the investors who purchase the bonds is called the When are issuers more likely to call an outstanding bond issue? When interest rates are lower than they were when the bonds were issued O When interest rates are higher than they were when the bonds were issued

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