Types of Bonds Flashcards Preview

An unsecured corporate bond

Most senior form of corporate bond

Three examples of secured corporate bonds

Agency debt that is backed in full by the U.S. government

Considered the safest form of debt issued in the U.S.

Taxable at the federal level; may be exempt from taxation at the state level

Corporate debt instruments with a maturity of no more than 270 days

Maximum maturity of commercial paper

Bonds backed only by the good faith of the issuing corporation

Protects bondholder through a written agreement between issuer and trustee

Typically backed by real estate holding of a corporation

Typically secured by other securities owned by the corporation

Secured by physical assets owned by the company

Allow for the exchange of debt for equity issued by the same corporation

The stated number of common shares a bondholder receives upon conversion

The point at which there is neither profit or loss in a conversion

The amount of interest paid prior to maturity on a Treasury Bill

U.S. Government instrument that matures in 1 year or less

U.S. Government instrument that is quoted on an annualized discounted yield basis

U.S. Government instruments that matures within 2 -10 years

U.S. Government instruments that typically mature in 20 - 30 years

U.S. government instruments that are quoted in 32nds

Inflation-indexed bonds issued by the U.S. Treasury

U.S. government zero-coupon bond instrument that has no reinvestment risk

Three government entities that issue mortgage-backed securities

Investment risk most associated with mortgage-backed securities

Investment risk that coincides with early payment of a mortgage-backed securities

Distinct maturity categories of CMOs

Frequency of interest payments on mortgage-backed securities

Mortgage-backed securities with the implied backing of the U.S. government