Question

Back to Assigrumant Attempts: 2. Characteristics of bonds To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is Average: 8 essential For example: . A bonds is generally $1,000 and represents the amount bonrowed 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 caled a . A bonds allows a bondholder or preferred stockholder to convert their bond or preferred share, respectively, into a specfied number or value of comman shares. Suppose you read an article about the colden 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 A-Z what is the coupon interest rate of this bond? 0.435% o 4.375% AM 4:52 Assignme nt 07-Bonds and Their Valuation Bridge Bonds senes A Dated 7-15.2005 4.375% Due 7-15-2055 @100.00 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 ca led a bond which feature of a bond contract allows the issuer to redeem bonds under specified terms prior to maturity? O Put provision O Call provision Sinking fund provision which term is used to desanbe a call provision in which the issuer is prevented from calling a portion or the entre issue for several years during the early years of the bond issue? O Dedining call provision O Delayed call provision O Deferred cal provision lash Player WWIN 11,7700,16 02034 Ceng2004-2016 Apna pras nome eringts reserved A-Z 13 Cengagn Leaning ecpt c moedN right eered Cantinue without saving AM 4:53 3/27/2019

Answer 1

1.
Face value or par value or principal

2.
Default

3.
Sinking Fund provision

4.
Convertibily provision

5.
4.375%

6.
Fixed Coupon

7.
Call provision

8.
Deferred call provision