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Governments and Corporations borrow money for long term by issuing securities called ________
Interest payment paid to bondholders is a ____________ payment
Payment at maturity of bond is called:
Date when bond will be paid off...
What is the coupon rate
Interest Rate (aka. Discount rate) is the rate at which cash flows from bond are discounted to determine PV
T/F?
Coupon Rate and Discount Rate are the same
(T/F)
Price of a bond is PV of all future cash flows
aka
PV of coupon payments and face value of bond
T/F?
When does bond sell at face value?
What does it mean:
Bond sells at a premium
What does it mean:
Bond sells at a discount
Current Yield is..?
Yield to Maturity (YTM) is...?
Rate of Return is...?
Taxes reduce the rate of return on an investment
T/F
What is a Real Return Bond
What is the Fisher Effect
What is Expectations Theory
What is interest rate risk?
Longer term bonds get hit softer than shorter term bonds by interest rate Changes
T/F
Lower Coupon Bonds get hit harder than bonds with higher coupons
T/F
What is default risk
What is a Default premium
Bond rating companies (x3)
BBB+ are: ________________ bonds
BB - are : _______________ bonds
Types of Bonds: (x6)
