A bond$$syield to maturity $$is generally $$1,000$ and represents the amount borrowed from the bond$$s first purchaser.$$ A bond issuer is said to be indefault $$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 called acall provision $.$ A bond$$sconvertible provision $$gives the issuer the right to call, or redeem, a bond at specific times and under specific conditions.