To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential For example: A bond's refers to the interest payment or payments paid by a bond A bond issuer is said to be in with the terms of the indenture agreement or if it violates one or more of the issue's restrictive covenants. if it does not pay the interest or the principal in accordance 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 preferred share, respectively, into a specified number or value of common shares. allows a bondholder or preferred stockholder to convert their bond or 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 coupon interest rate of this bond? o 0.435% 0 4.375% If the coupon interest rate remains constant from the time of issue until the bond matures, then the bond is called a bond