To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential.

For example:

A bond's

is generally $$1,000$ and represents the amount borrowed from the bond's first purchaser.

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

allows a bondholder or preferred stockholder to convert their bond or preferred share, respectively, into a

specified number or value of common shares.