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th the terms with the appropriate explanations Call provision Price of a security Current yield Debenture Debenture Zero-coup
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Answer #1

Right to buy back a bond - Call provision is the right to buy back a bond.

Legal document outlining the terms of the bond - Indenture is any legal document or agreement providing the terms of the bond.

The sum of all present values of all future cash flows - Price of a security is the sum of present values of all the future cash flows

Annual coupon divided by price - Current Yield

Unsecured debt - A debenture is an unsecured debt issued by a firm to raise capital without securities in exchange.

Bond that does not pay coupons - A Zero-coupon bond does not pay coupons and is issued at discount to the par value.

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