Master this deck with 38 terms through effective study methods.
Generated from uploaded pdf
Focuses on strategies for managing finances over more than one year.
Mix of debt and equity used to finance a company's operations.
Long-term financing is for permanent needs, while short-term is for immediate operational needs.
Minimum return needed to satisfy shareholders and lenders.
A debt contract where an issuer borrows money and promises to pay interest and principal.
The issuer repays the bond's face value to the bondholders.
A bond that can be redeemed by the issuer before its maturity date.
A bond that allows the investor to sell it back to the issuer before maturity.
It can be converted into a predetermined number of shares of the issuer's stock.
Clauses that impose restrictions on a borrower to protect creditors.
A secured bond backed by specific collateral.
An unsecured bond relying solely on the issuer's creditworthiness.
A bond that pays a constant interest rate throughout its life.
Their coupon rate changes periodically based on a benchmark rate.
A bond that pays no periodic interest and is issued at a discount.
A bond with a coupon rate that increases over time.
A bond with a fixed maturity date for repayment of face value.
A bond with no maturity date, paying interest indefinitely.
Focuses on strategies for managing finances over more than one year.
Mix of debt and equity used to finance a company's operations.
Long-term financing is for permanent needs, while short-term is for immediate operational needs.
Minimum return needed to satisfy shareholders and lenders.
A debt contract where an issuer borrows money and promises to pay interest and principal.
Investors receive periodic interest payments and principal at maturity.
The amount repaid to bondholders at maturity, typically $1,000.
A bond that can be redeemed by the issuer before its maturity date.
A bond that allows the investor to sell it back to the issuer before maturity.
A bond that can be converted into a predetermined number of shares of stock.
Clauses in a debt agreement that impose restrictions on the borrower.
Mortgage bonds are secured by collateral, while debentures are unsecured.
A bond that pays a constant interest rate throughout its life.
A bond that pays no interest but is sold at a discount to its face value.
The debt becomes due immediately.
A fund set aside to repay bonds as they come due.
A bond whose payments are linked to an inflation index.
A bond with increasing coupon rates over time.
A bond that does not pay interest in early years but accrues it.
Redeemable bonds have a fixed maturity date; irredeemable bonds pay interest indefinitely.