Personal Finance Bonds

Face/Par Value The amount a bondholder is repaid when a bond matures.
Fixed Income Bonds are considered ______ investments because a specified amount of interest is paid on a regular basis.
Registered A ________ bond is recorded in the owner’s name by the issuer.
Coupon A ________ or bearer bond is not registered in the owner’s name by the issuer.
Callable A bond is ________ when it can be paid off before the maturity date.
Debenture A ________ bond is a bond backed only by the reputation of the issuing corporation.
Mortgage Secured bonds, called __________ are backed by specific assets of the issuing firm.
Convertible A ________ bond can be exchanged for a specified number of shares of common stock.
Maturity The principal of a bond must be repaid in full on it’s ________ date.
Premium When bonds sell for more than their face value, they are selling at ________.
Discount When bonds sell for less than their face value, they are selling at a _________.
Revenue A _________ bond is repaid from the income generated by a project it’s designed to finance.
Municipal Bonds issued by state and local governments are called _________. Also exempt from state and local taxes.
General Obligation A __________________ bond is backed by the full faith and credit of the issuing governmental unit.
Investment Grade High-quality bonds are ____________ because they are considered safe, stable, and dependable.
Junk Corporate bonds with low or no investment rating, called _________ bonds, are risky and speculative.
Zero-Coupon A ____________ bond is a type of bond that is sold below it’s face value, with no interest payments, and redeemable for it’s face value at maturity.
Current Yield The _____ is determined by dividing the annual interest dollar amount of a bond by its current market price.
Best Bond Rating AAA.
Mortgage Bond Backed by assets.
Municipal ________ bonds are issued by state and local governments.
Call Provision A feature that allows a bond issuer to buy outstanding bonds from current bondholders before the maturity date is known as _____________.
Junk Bonds Bonds that maintain a low rating.
Registered _________ bond is recorded in the owner’s name by the issuing company.
Debentures What are corporate bonds backed by the general credit standing of a corporation called?
Maturity Date The principal or face value of the bond must be paid in full at the premium ____________.
Premium Bond A bond issued for more than it’s face value is known as a ____________.
Face/Par Value mostly sold in increments of $1000.
Bonds= a fixed income investment.
Municipal Bonds… Exempt from federal and state taxes.
Bonds Raise… Capital gains.
Yield Calculation= Annual Interest/Market Value

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