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Unformatted text preview: 1 Final Draft of Spending Plan March 16, 2011 March 16, 2011 Important Course Activities Midterm: March March 21, 2011 21, 2011 Midterm Review: March March 16, 2011 16, 2011 Bonds A debt security / loan / investment Contract Issuer is the borrower (debtor), the holder is the lender (creditor) Borrower pays interest to the lender, also know as the coupon Principle paid back at a later date Used to finance long-tem investments Bonds vs. Stocks Bonds Creditor stake in the company Stocks Ownership in the company in the company Defined terms and maturity date company Voting rights Dividends Types of Bonds Municipal bond War bond Bearer bond Perpetual bond Treasuries Eurodollar bond Equity-Linked Note Asset-backed security Serial bond Subordinated debt Inflation-indexed bond Zero-coupon bond Fixed rate bond Junk bond Revenue bond Convertible bond Corporate bond Floating rate note Foreign bond Callable bond 2 Bond Features Face Amount : another name principle, this is the amount paid at the end of maturity Maturity Date: the date when the borrower must pay the face amount back Coupon: is the interest rate paid to the...
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This note was uploaded on 04/19/2011 for the course EE 0822 taught by Professor Lengkeek during the Spring '11 term at Temple.
- Spring '11