Chapter 9 - DS - Finance 360 Investments Chapter 9 Bond...

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Finance 360 Investments Chapter 9
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Bond Characteristics What is a Bond?
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Bond Characteristics Characteristics Par Value / Face Value Coupon Rate Coupon Maturity Date Market Price Issue Price (Original Issue Price)
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Bond Characteristics Types Treasury Notes and Bonds Corporate Bonds Agency Bonds Municipal Bonds International Bonds Preferred Stock?
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Bond Characteristics Bond Provisions Callable Convertible Puttable Floating Rate (Floaters) Reverse Floaters Asset-backed Pay-in-kind Catastrophe Bonds Index Bonds
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Quotes / Accrued Interest Bond Quotes Bonds are quoted in percent of Face and 1/32 Example: 109:08 is 109 8/32% Accrued Interest Buyers of bonds also must pay accrued interest Accrued Interest = Annual Coupon Payment Days since last coupon 2 Days separating coupon payments X
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Callable Callable Bonds/Preferreds Callable by issuing company before maturity Have a specified “Call Price” Call Protection Refunding Why are they issued?
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Convertible Convertible Bonds/Preferreds Convertible into shares of common stock Conversion Ratio – number of shares
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This note was uploaded on 01/12/2010 for the course FIN FIN 360 taught by Professor Shimmin during the Fall '09 term at University of Dayton.

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Chapter 9 - DS - Finance 360 Investments Chapter 9 Bond...

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