You are watching: The entity that promises to make the interest and maturity payments for a bond issue is called the
issuer.Bonds space debt securities in i beg your pardon a borrower assures to pay a stated interest rate and principal at a future date.A link is a permanent debt instrument; think that it together an ns Owe girlfriend (IOU) in i beg your pardon you loan money come the entity supplying the bonds. The entities the make the interest and also maturity payments for a bond concern are called the issuers that the bond. Bonds room usually issued by governments, corporations, municipalities, and agencies.
New York City issued a general obligation bond for a canal in 1812. It was the an initial formal blame instrument v a solved repayment schedule approve by a city.Who is the issuer of the bonds?Federal Reserve financial institution of new YorkThe new York City governmentBank of new York
New York City issued a general obligation bond because that a canal in 1812. It to be the first formal blame instrument v a addressed repayment schedule authorize by a city.What form of bonds room these?Corporate bondsMunicipal bondsU.S. Treasury bonds
Which that the following species of bonds has actually the the very least default risk?Municipal bondsCorporate bondsTreasury bonds
Which that the following statements is true?Treasury bonds space assumed to have actually no default risk.Treasury bonds are riskless securities.
•A bond"s ___________________________ is usually $1,000 and represents the amount obtained from the bond"s very first purchaser.
•A shortcut issuer is stated to be in ________ if that does not pay the interest or the major in accordance v the regards to the indenture agreement or if that violates one or much more of the issue"s limit covenants.
•The contract that explains the terms of a borrowing arrangement between a firm that sells a link issue and also the investor who acquisition the binding is dubbed __________________ .
•A bond"s _________________________ enables a bondholder or desired stockholder to convert their bond or desired share, respectively, into a mentioned number or worth of typical shares.
If the price the the shortcut is initially discounted and offers no coupon payments, the shortcut is referred to as a ________________________ bond.
Which feature of a shortcut contract permits the issuer come redeem binding under stated terms before maturity?Call provisionDeferred speak to provisionConvertible provisionSinking fund provision
When are issuers much more likely come call an outstanding bond issue?When interest rates are higher than lock were as soon as the bonds were issued.When interest rates are reduced than they were once the bonds to be issued.
See more: Choose An Example Of How A Manager Can Increase Variable Costs While Decreasing Fixed Costs.
Bonds that market a lower coupon price than the market interest price for a similar bond at the time of issue.