Master this deck with 18 terms through effective study methods.
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Federal government, municipal governments, and corporations.
The date when the bond will be redeemed by the issuer.
Money market securities have maturities of one year or less.
Interest is paid at maturity, with no interim cash flows.
Bond prices decrease, leading to potential capital losses.
The amount repaid to the bondholder at maturity.
A bond that can be redeemed by the issuer before maturity.
Sell the bond back to the issuer before maturity.
They may be called when interest rates fall, exposing investors to reinvestment risk.
The risk that the issuer will fail to make timely payments.
The purchasing power of cash flows from fixed-rate bonds.
The difficulty of selling a bond at or near its value.
Increased credit spread and decreased bond price.
To uniquely identify a bond issue.
The risk that interim cash flows can be reinvested at lower rates.
Its interest rate resets periodically based on a reference rate.
A bond that can be exchanged for shares of a different corporation.
The risk that changes in volatility will negatively impact bond prices.