Bonds

Question 1

Collateral Trust Bond

Answer 1

Bond that is tied and collaterald by real state

Question 2

Convertible Bonds

Answer 2

Bonds that can be converted into common stock

Question 3

Term Bond

Answer 3

Normal Bond with principal is matured and paid at the end of the period

Question 4

Serial Bond

Answer 4

Principal paid throughout the life of the bond not at the end of the period

Question 5

Deep Discount Bond

Answer 5

No Coupon payment all the principle and interest should be accrued for

Question 6

Bond DIscount

Answer 6

Market Rate is higher than stated or nominal rate so the borrower need to sell his bond at discount and amortize it over the life of the bond