Nicolette Lesson 7-2 Quiz

Bond Rating

• A letter score given by rating agencies to rate the quality of bonds.

• An interest-bearing security, also called a fixed-income security, where the investor is the lender, and the borrower is usually a corporation or government.

• The amount of annual income paid to a bondholder compared to the bond's face or par value, expressed as an interest rate.

• A legal entity that finances its operations by selling securities.

Bond

Zero-Coupon Bond

Yield

• The amount earned over a period of time expressed as a percentage of the amount invested.

• The date a loan or bond is due to be paid back to the lender/investor.

• A bond that doesn't pay a coupon (interest) but instead sells at a discount, and then pays the face value at the maturity date.

• An interest-bearing security, also called a fixed-income security, where the investor is the lender, and the borrower is usually a corporation or government.

Par Value

Zero-Coupon Bond

Coupon Rate

Issuer

• 1. A legal entity that finances its operations by selling securities.

• The face value of a bond, also the amount that is paid on the maturity date.

•   The amount of annual income paid to a bondholder compared to the bond's face or par value, expressed as an interest rate.

• An interest-bearing security, also called a fixed-income security, where the investor is the lender, and the borrower is usually a corporation or government.

Maturity Date

Yield