To be effective issuing and Investing in bonds, knowledge of their terminology, characteristics, and features is essential. For example: A bond's coupon payment refers to the Interest payment or payments paid by a bond. A bond issuer is said to be in default 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. 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 A bond's convertibility provision allows a bondholder or preferred stockholder to convert their bond or preferred share, respectively, into a specified number or value of common shares. a Suppose you read an article about the Golden Gate Bridge and Highway District bonds. It includes the following information: Bridge Bonds Series A Dated 2-15-2005 4,375% Due 7-15-2055 0100.00 What is the coupon interest rate of this bond? 0.435% 4.375 A bond's coupon payment refers to the interest payment or payments paid by a bond. A bond issuer is said to be in default If it does not pay the interest or the principal in accordance with the t- agreement or if it violates one or more of the issue's restrictive covenants. The contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the inve is called A bond's provision allows a bondholder or preferred stockholder to convert their bond or preferre a trustee specified ble of common shares. a debenture Suppose yo le about the Golden Gate Bridge and Highway District bonds. It includes the following informatii an indenture Bridge Bonds Series A Dated 7-15-2005 4.375% Due 7-15-2055 @100.00 What is the coupon interest rate of this bond? O 0.435% 4.375% What is the coupon interest rate of this bond? 0.435% 4.375% If the coupon Interest rate remains constant from the time of issue until the bond matures, then the bond is called a fixed-rate bond. Which feature of a bond contract allows the issuer to redeem a bond issue immediately in its entirety at an amount greater than par value prior to maturity? Deferred call provision Sinking fund provision Convertible provision Call provision Which term is used to describe a call provision in which the issuer is prevented from calling a portion or the entire issue for several years during the early years of the bond issue? Sinking fund provision Deferred call provision Delayed call provision