Question: Term Answer Description Zero coupon bond A. This bond is issued by the U.S. govemment, whose principal payments are adjusted to protect investors against inflation
Term Answer Description Zero coupon bond A. This bond is issued by the U.S. govemment, whose principal payments are adjusted to protect investors against inflation as measured by the Consumer Price Index. This bond provision allows the issuer to retire the security prior to maturity. This term defines the number of shares of common stock that a bondholder will receive when they change their bonds into common stock security. This term refers to a set of bonds that are issued at the same time but have different maturity dates and coupon rate. B. Equipment Trust Certificate Sinking FundC. Call feature D. Debenture E. This is a bond provision that specifies the annual repayment schedule that will be used to service the bond and pay off the debt. Treasury inflation-indexed bond F. These types of bonds sell at a much lower price than their par value but offer no interest payments. Serial obligation G. This type of bond is backed by a specific asset for which the bond was General obligation bond Conversion ratio issued such as railroads cars, airplanes etc. This term is used to refer to an unsecured bond issued on the general credit of the issuing entity. H. I. This term is used to state the value of bond that includes the quoted price plus the accrued interest that bondholders are likely to earn. Dirty price J. This type of municipal bond is backed by the full faith and credit of the issuing municipality. The coupon payments are likely to paid by the taxes that the municipality collects
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