OPTIONS FOR THE FIRST 4 BLANKS:

Blank 1: Price / Par Value / Coupon Payment

Blank 2: Default / Bankruptcy / Liquidation

Blank 3: A trustee / An indenture / A debenture

Blank 4: Call provision / Call premium / Convertibility Provision

To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential. For example: . A bond's refers to its face value and the amount of money that the issuing entity borrows and promises to repay on the maturity date. . 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. . The contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the investors who purchase the bonds is called . A bond's allows a bondholder or preferred stockholder to convert their bond or preferred share, respectively, into a specified number or value of common shares. If the price of the bond is initially discounted and offers no coupon payments, the bond is calleda zero-coupon floating-rate Which feature of a bond contract allows the issuer to redeem bonds under specified terms prior to maturity? O Convertible provision O Sinking fund provision O Poison put covenant O Call provision Which term is used to describe a call provision in which the issuer is prevented from calling a portion or the entire issue for several years during the early years of the bond issue? Delayed call provision Sinking fund provision O Deferred call provision