FIN 300 Study Guide - Final Guide: Debenture, Microsoft Powerpoint, Foreign Corporation
Document Summary
Fin 300 exam 1 (chapters 1,2,3,4,5,6,7,9,10 & 11) Treasury bonds bonds issued by the federal government, sometimes referred to as government bonds. Corporate bonds bonds issued by corporations. Municipal bonds bonds issued by state and local governments. Foreign bonds bonds issued by foreign governments or by foreign corporations. Par value the face value of a bond. Coupon payment the specified number of dollars of interest paid each year. Coupon interest rate the stated annual interest rate on a bond. Fixed-rate bond a bond whose interest rate is fixed for its entire life. Floating-rate bond a bond whose interest rate fluctuates with shifts in the general life of interest rates. Zero coupon bond a bond that pays no annual interest but is sold at a discount below par, thus compensating the investors in the form of capital appreciation. Original issue discount (oid) bond any bond originally offered at one price below its par value.
