Finance Exam 3

Issued by the Federal government to raise money

• Treasury Bonds

• Corporate Bonds

• Municipal Bonds

• Foreign Bonds

Issued by the company to raise money

• Treasury Bonds

• Corporate Bonds

• Municipal Bonds

• Foreign Bonds

Issued by local, state, county, city governments

• Treasury Bonds

• Corporate Bonds

• Municipal Bonds

• Foreign Bonds

Issued by foreign governments and corporates

• Treasury Bonds

• Corporate Bonds

• Municipal Bonds

• Foreign Bonds

Face amount of the bond, which is paid at maturity

• Par Value

• Coupon interest rate

• Maturity date

• Issue date

• Yield to maturity

Stated interest rate (generally fixed) paid by the issuer

• Par Value

• Coupon interest rate

• Maturity date

• Issue date

• Yield to maturity

Date on which the par value must be repaid

• Par Value

• Coupon interest rate

• Maturity date

• Issue date

• Yield to maturity

When the bond was issued

• Par Value

• Coupon interest rate

• Maturity date

• Issue date

• Yield to maturity

Rate of return earned on a bond held until maturity (Promised yield)

• Par Value

• Coupon interest rate

• Maturity date

• Issue date

• Yield to maturity

A provision that fives the issuer the right to redeem the bonds under specific terms prior to the normal maturity date.