Question: Vocabulary Set 1 To begin learning about Bonds, read Section 7-1 and learn about the 4 types of common bond issurers then match the vocabulary

Vocabulary Set 1

To begin learning about Bonds, read Section 7-1 and learn about the 4 types of common bond issurers then match the vocabulary below

(Link to 7-1 in the Book)

These are issued by corporations and government agencies that are looking to raise capital

The corporation or entity hoping to raise capital

The investor hoping to earn return from owning debt securities

Bonds issued by the federal government

Bonds with no default risk in the U.S.

Bonds issued by corporations

In these bonds, credit risk reflects the company's characteristics and risk profile

Bonds issued by state and local governments

Bonds issued by foreign governments or foreign corporations and exposed to exchange rate risk

A.

Municipal bonds

B.

Bond

C.

Bondholder

D.

Foreign Bonds

E.

Corporate Bonds

F.

Borrower, or Issuer

G.

Treasuries

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