Question: hen match the contract characteristic with its description below - A. B. C. D. E. This term is also known as the face-value and represents

hen match the contract characteristic with its description below

- A. B. C. D. E.

This term is also known as the face-value and represents the amount of money the firm borrows and promised to repay

- A. B. C. D. E.

When bonds are issued this is set at a level that will induce investors to buy the bond at or near par value (this means when the bond is introduces, this rate should be close to the market discount rate on similar bonds)

- A. B. C. D. E.

In these types of bonds the coupon rate does not vary over the life of the bond. This characteristic is provided in the contract

- A. B. C. D. E.

Some bonds have coupon rates that change and are often benchmarked to other market interest rates. In the past the LIBOR rates were common tools for benchmarking these bonds

- A. B. C. D. E.

This is the day upon which the bond contract expires

A.

par value

B.

maturity date

C.

Floating rate bond

D.

Fixed Rate Bonds

E.

Coupon rate

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