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11. At maturity the bondholder is guaranteed the $____________ called the ______

ID: 2782397 • Letter: 1

Question

11. At maturity the bondholder is guaranteed the $____________ called the ___________________ or __________________.

12.The yield to maturity on any bond includes all interest payments plus the _______________ amount.

13.Treasury bills are often referred to as _______ ______ rate.

14.Municipal bonds, also known as _________ are bonds issued by state or local governments or by government agencies.

15. ______________ are debt issued by corporations that give the bondholder the option to convert the bonds into shares of common stock at a later date.

16.The rate at which investors can convert bonds into stocks, that is, the number of shares an investor gets for each bond, is determined by a metric called the _____________________.

17. A third category of bonds is issued by banks or other financial sector participants and are referred to as ________.

18. A bond that is backed by a number of mortgages are known as ________ _________ ___________.

19. Because of their characteristics, preferred stocks ___________ the line between stocks and bonds.

20. Another name for preferred stocks is ___________ securities.

21. Preferreds are issued with a fixed _____ _____ and pay dividends based on a percentage of that par at a fixed rate.

Explanation / Answer

11. principal, face value, par value

12. principal/par value

13.Nominal risk free rate

14. Munis or Muni Bond

15. Convertible Bonds

16.Conversion rate

17. Asset Backed Securities or ABS

18. Mortgage Backed Securities

19. straddle

20. Preference

21. dividends

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