BUS 420 Chapter Notes - Chapter 4: Risk Premium, Callable Bond, Yield Curve
20 Jul 2020
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A promissory note issued by a business or a governmental unit. Bonds issued by the federal government; sometimes called t-bonds or government bonds. Debt issued by corporations and exposed to default risk. Different corporate bonds have different levels of default risk, depending on the issuing company"s characteristics and on the terms of the specific bond. The interest earned on most municipal bonds is exempt from federal taxes and also from state taxes if the holder is a resident of the issuing state. A bond sold by a foreign borrower but denominated in the currency of the country in which the issue is sold. Thus, a u. s. firm selling bonds denominated in swiss francs in. Dollar amount of interest paid to each bondholder on the interest payment dates. Stated rate of interest on a bond; defined as the coupon payment divided by the par value. A bond whose coupon payment may vary over time.
