COMMERCE 4FP3 Chapter Notes - Chapter 12: High-Yield Debt, Capital Gain, Prepayment Of Loan
Document Summary
Bonds long-term securities issued by government agencies or corporations that. Debentures long-term debt securities issued by corporations that are secrured only by the corporation"s promise to pay. Par value aka face value, amount returned to investor at maturity date when bond. Call feature opportunity to repurchase the entire issue. Sinking fund places a limit on how much of an issue can be repurchased. Allows investor to convert bond into stated number of shares of the issuer"s. Helps the investor, short-term bond allow the maturity days of the bonds lower yield. Allows the investor to redeem the bond at a face value before it matures. Do when the interest rates have gone up, benefits the investor. The annualized return on a bond if it is held until maturity. Discount bond - a bond that is trading at a price below its par value. Premium bond a bond that is trading at a price above its par value.
