1. A simplistic definition of a bond is "between thelenderand borrower that includes the details of the loan and its payments" (Hayes, 2020). There are two features to a bond, credit quality, and time to maturity, which are the principal determinants of a bond's coupon rate (Hayes, 2020). The credit quality of a bond is the measure of how likely an issuer is going to repay the loan. A credit-quality rating can be given to any individual bond issuer or to a portfolio of bonds (Chen, 2019). With this, the lower-rated bonds tend to default more likely and offer therefore must offer a higher yield. To determine the bond ratings, the investigators must rely on bond ratings to evaluate the credit quality. These ratings are a on a scale of high to low along with the probability of default, should there be a failure to collect the principal at maturity, it is then considered a default (AAll).

What are other alternate perspective on selected bond feature above?

2. The bond featureI selected is a callable bond.A callable bond (also called redeemable bond) is a type of bond that allows the issuer of the bond to retain the privilege of redeeming the bond at some point before the bond reaches its date of maturity(Lumen Learning, n.d.-n) .This type of bond allows the issuer of the bond to redeem the bond if choose to do so before the call date. Most of these bonds are can be paid at par but in some cases the issuer has to pay callable bond that deal with yield bonds. The value is determine by the interestrate of the bond. A business may chose to redeem their bond if interestrates go down, which allows them to re-borrowat a beneficial rate(Chen2020). This bond also has its highest call value early in the bond's life or could be determines through the specified terms when the company may recall the note.

What are other alternate perspective on selected bond feature above?