ch6: Bonds

Debt Characteristics

debt

loan

features

principal

maturity

due

interest

principal value

assets and earngs

priority

control

no vote

$ restrictions

Debt types

short term

T-bills

Repos

Fed Funds

Banker's Acceptance

Commercial paper

CD's

Euro$ deposits

MM Funds

long term

terms loans

bonds

govt

Fed

municipal

state

corporate

income

putable

indexed

floating-rate

mortgage

debenture

0 coupon

Junk

foreign debt instrucments

defined

eurodebt

Subtopic

contract features

indenture

call provision

sinking fund

convertible feature

recently

Price: interest rates

valuation

basic model

ratings

factors

importance

effect