To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential. For example: . A bond's yield to maturity bond's first purchaser. is generally $1,000 and represents the amount borrowed from the 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 debenture gives the issuer the right to call, or redeem, a bond at specific times . A bond's convertible provision and under specific conditions. the following Ch 07: Assignment - Bonds and Their Valuation Bridge Bonds Series A Dated 7-15-2005 4.375% Due 7-15-2055 @100.00 What is the maturity date of this bond? 07-15-2005 7-15-2055 zero-coupon If the price of the bond is initially discounted and offers no coupon payments, the bond is called a bond. S 5 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 indenture I of ED 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? O Deferred call provision O Delayed call provision O Sinking fund provision