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bonds
lending money to a company or government. In return, they promise to pay you back later, plus interest.
deffered call
bond cant be called until set number of years has passed
sinking bond
bond issuer paying off bond
municipal bonds
small org that needs bonds
how much to zero coupon bonds pay in interest?
0!!
poorer rating means investors demand __ rate of return
higher
safest bond grade
AA
very risky bond rating
CC, C, D
muciple bonds are tax exempt!
yay!
par value
plain value of finance instrument
as issuer becomes riskier, the rate of return should
RISE!
interest rates rise, bonds outstanding value
falls
long term bonds fluctuate in price more than short term bonds
true that
bond approaches maturity, market value approaches
par value
interest rates go down, bond prices go up
call provisions can limit a bonds upward price movement
bonds reduce risk through diversification
true
bonds produce steady income
yes!
bonds are a safe investment if held to
maturity
if interest rates are to go up, purchase _ term bonds
short
the bond you should purrchase if interest rates are to drop and are not callable
long term
Note 
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