Term Callable bonds Current yield Coupon Term loan Yield to maturity Foreign debt Yield to call Debenture Investment-grade bond Revenue bond Answer Description A. The portion of a bondholder's return that results from a bond's interest payment, calculated by dividing the bond's interest payment by its market value. B. An example of this form of debt is issued by a German borrower, sold in the United States, and denominated in U.S. dollars C. A type of bond that allows the bond issuer to retain the privilege of redeeming it at a pre-specified price at some time prior to its normal maturity date D. The term describes the 13.7% return that would be earned by a bondholder who owns a bond purchased yesterday for $875, that pays interest payments of $40 every six months, has a call price of $1,080 and could be called four years from today. E. This type of debt transaction is privately negotiated between a corporate borrower and a financial institution to be repaid using a series of payments containing interest and principal over a period of two to thirty years F. The return earned by a bondholder who purchases a bond today at its market price, assuming that the bond will be held until maturity and that all coupons and the maturity payment will be received in accordance with the indenture G. The term applied to bonds that are judged by their rating agency as being likely to pay their interest and maturity obligations. H. The interest payment paid on a bond, calculated by multiplying the bond's interest rate by its face (par) value I. Atype of municipal bond whose interest and maturity payments are paid using funds generated by the project being financed. J. An example of this bond was issued by Global Chem three years ago. It pays a 4.25% coupon and is not collateralized in the event of financial distress