ACTSC371 Study Guide - Final Guide: Callable Bond, Current Yield, Credit Default Swap
5 Oct 2018
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Unlike other forms of borrowing, bonds are considered to be securities, often trade publicly and are regulated by the securities commissions. Every bond issue has a bond indenture that states in legal terms what the features of that particular issue are. _____________________________________________________________; the par value of most bonds is ,000 though prices are usually quoted based on a par value of 100; e. g. 99. 583 means the. It is important to note that bonds can have many different features they represent an agreement between issuers and investors. From time to time investors or issuers want to have specific features in addition to the basic features. Different features that have been appealing in the past include: __________________________________________________________________________ if the borrower fails to pay interest or principal. Registered or bearer: registered means the owner"s name is registered with the trustee of the bond indenture; bearer means whoever is holding the bond is considered to be the owner.
