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maxonik [38]
2 years ago
12

To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential.

Business
1 answer:
abruzzese [7]2 years ago
5 0

Answer:

  1. Par value
  2. Default
  3. Indenture

Explanation:

A bond's <u>par value</u> refers to its face value and the amount of money that the issuing entity borrows and promises to repay on the maturity date.

A bond issuer is said to be in <u>default</u> if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates or more of the issue's restrictive covenants.

The contract that describes the terms of a borrowing arrangement between a firm that sells a bond Issue and the investors who purchase the bonds is called <u>indenture</u>.

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