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Bond Fundamentals: Indentures, Pricing, Interest Rates and Risk Considerations

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Finance - Personal Finance

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michael1tekrzp Created by 10 mon ago

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Cards in this deck(47)
What is the contract between a bond issuer and a bond owner called?
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What is the term for the stated interest payment made on a bond?
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What is the principal amount of a bond that is repaid at the end of the term called?
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How is the coupon rate of a bond calculated?
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What is the specified date on which the principal amount of a bond is paid?
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What is the rate required in the market on a bond, not included in the indenture?
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How do we calculate the price of a bond?
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What happens to bond prices when interest rates rise?
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What happens to bond prices when interest rates fall?
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What is the risk that arises for bond owners from fluctuating interest rates?
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How is the current yield of a bond calculated?
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What is the written agreement between the corporation and the lender detailing the terms of the debt issues?
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Which of the following are terms of a bond?
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What is a part of the indenture that limits certain actions during the term of the loan to protect the lender's interest?
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What is a negative covenant in a bond indenture?
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What is a positive covenant in a bond indenture?
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Complete the sentence: Debt is not _____, interest payments are ______, unpaid debt allows ______.
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When a bond's coupon rate is greater than the YTM, what happens to the bond's price?
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When a bond's coupon rate is equal to the YTM, what happens to the bond's price?
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What is the definition of zero in relation to price and that?
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Which are the two main bond rating agencies?
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What are the different debt ratings provided by agencies?
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What type of risk are rating agencies primarily concerned with?
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What is a bond that makes no coupon payments and is initially priced at a deep discount called?
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What are bonds issued by municipalities with interest that is often tax-free at the federal level called?
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What are bonds with multiple durations, interest rates determined by the market, and rated by agencies called?
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What is the bid/ask spread and how do dealers make money from it?
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Which of the following statements are true about debt?
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Which of the following statements are true about equity?
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What are some challenges in stock valuation compared to bond valuation?
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How is the present value of a stock calculated?
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Since we can't know the price of the stock in one year, what do we do?
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What are the three types of situations we can value stock?
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How is the stock price calculated in a zero growth scenario?
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How is the stock price calculated in a constant growth scenario?
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How might we estimate the dividend growth rate?
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How is the stock price calculated in a non-constant growth scenario?
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How is the required rate of return calculated?
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How is the PE ratio calculated?
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How is stock valuation using PE calculated?
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What happens if a company has zero earnings?
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What is the dividend yield?
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What is the capital gains yield?
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What does common stock give an investor?
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What is a proxy in the context of shareholder voting?
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What is a proxy fight?
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What is preferred stock?
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