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Definition of Bond covenant
A contractual provision in a bond indenture. A positive covenant requires certain actions, and
A bond covenant that specifies certain actions the firm must take. Also called
A bond covenant that specifies certain actions the firm must take.
A bond covenant that restricts in some way the firm's ability to incur additional indebtedness.
A bond covenant that restricts in some way the firm's ability to pay cash dividends.
Maximum price fluctuation
A bond covenant that restricts in some way a firm's ability to sell major assets.
A bond covenant that restricts in some way a firm's ability to grant liens on its assets.
A bond covenant that restricts in some way a firm's ability to
A bond covenant that restricts in some way a firm's ability to enter into
A bond covenant that restricts in some way a firm's ability to borrow at
A bond covenant that limits or prohibits altogether certain actions unless the bondholders agree.
A bond covenant that requires the borrower to grant lenders a lien equivalent to any
A bond on which interest accrues, but is not paid to the investor during the time of accrual.
bonds that are not registered on the books of the issuer. Such bonds are held in physical form by
bonds are debt and are issued for a period of more than one year. The U.S. government, local
A long-term, interest-bearing promissory note that companies may use to borrow money for periods of time such as five, ten, or twenty years.
A long-term debt instrument in which the issuer (borrower) is
Security that obligates the issuer to make specified payments
A financial asset taking the form of a promise by a borrower to repay a specified amount (the bond's face value) on a maturity date and to make fixed periodic interest payments.
Usually a fixed interest security under which the issuer contracts to pay the lender a fixed principal amount at a stated date in the future, and a series of interest payments, either semi-annually or annually. Interest payments may vary through the life of bond.
A debt security issued by a government or company. You receive regular interest payments at specified rates while you hold the bond and you receive the face value when it matures. Short-term bonds mature in less than five years; medium-term bonds mature in six to ten years; and long-term bonds mature in eleven years or greater.
Fixed interest security issued by a corporation or government, having a specific maturity date.
A contract for privately placed debt.
The method used for computing the bond-equivalent yield.
Bond equivalent yield
bond yield calculated on an annual percentage rate method. Differs from annual
The annualized yield to maturity computed by doubling the semiannual yield.
Bond Equivalent Yield
bond yield calculated on an annual percentage rate method
The contract that sets forth the promises of a corporate bond issuer and the rights of
Designing a portfolio so that its performance will match the performance of some bond index.
A conventional unit of measure for bond prices set at $10 and equivalent to 1% of the $100 face
With respect to convertible bonds, the value the security would have if it were not convertible
A system that monitors and evaluates the performance of a fixed-income portfolio , as well as the
Amounts owed by the company that have been formalized by a legal document called a bond.
bonds issued by emerging countries under a debt reduction plan.
bond whose principal repayment is linked to the price of another security. The bonds are
Foreign bond issue made in London.
A bond that allows the issuer to buy back the bond at a
bond that may be repurchased by the issuer before maturity at specified call price.
Canada Savings Bonds
A bond issued each year by the federal government. These bonds can be cashed in at any time for their full face value.
Collateral trust bonds
A bond in which the issuer (often a holding company) grants investors a lien on
Insurance that a construction contract will be successfully completed.
Conflict between bondholders and stockholders
These two groups may have interests in a corporation that
bond that the holder may exchange for a specified number of shares.
bonds that can be converted into common stock at the option of the holder.
A eurobond that can be converted into another asset, often through exercise of
Debt obligations issued by corporations.
Any bond with a coupon. Contrast with discount bond.
Provisions in a bond indenture or preferred stock agreement that require the bond or preferred
Promise usually made in a contract whereby a party to the contract promises to do or not to do specified things.
High-coupon bonds that sell at only at a moderate premium because they are callable at a
An unsecured bond whose holder has the claim of a general creditor on all assets of the
A bond issued with a very low coupon or no coupon and selling at a price far below par
Debt sold for less than its principal value. If a discount bond pays no interest, it is called a
A bond with no coupons, priced below its face value; the return on this bond comes from the difference between its face value and its current price.
Municipal revenue bonds for which quotes are given in dollar prices. Not to be confused with
Dollar price of a bond
Percentage of face value at which a bond is quoted.
Equivalent bond yield
Annual yield on a short-term, non-interest bearing security calculated so as to be
A bond that is (1) underwritten by an international syndicate, (2) offered at issuance
A debt security issued in a market other than the home market of
bond that is marketed internationally.
Eurobonds denominated in U.S.dollars.
Eurobonds denominated in Japanese yen.
bond whose maturity can be extended at the option of the lender or issuer.
A feature of a debt or credit agreement that is designed to protect the lender or creditor. It is common to characterize covenants as either positive or negative covenants.
A promise made related to financial conditions or events. Often a promise not to allow certain balance sheet items or ratios to fall below an agreed level. Usually found in loan documents, as a protection mechanism.
Government bonds that are acceptable at par in payment of federal estate taxes when owned by
A bond issued on the domestic capital market of anther company.
Foreign bond market
That portion of the domestic bond market that represents issues floated by foreign
Full coupon bond
A bond with a coupon equal to the going market rate, thereby, the bond is selling at par.
General obligation bonds
Municipal securities secured by the issuer's pledge of its full faith, credit, and
bonds that are designed so as to qualify for immediate trading in any domestic capital market
See: Government securities.
High-coupon bond refunding
Refunding of a high-coupon bond with a new, lower coupon bond.
A bond on which the payment of interest is contingent on sufficient earnings. These bonds are
bond whose payments are linked to an index, e.g. the consumer price index.
Industrial revenue bond (IRB)
bond issued by local government agencies on behalf of corporations.
A municipal bond backed both by the credit of the municipal issuer and by commercial
A collective term that refers to global bonds, Eurobonds, and foreign bonds.
Investment grade bonds
A bond that is assigned a rating in the top four categories by commercial credit
A bond with a speculative credit rating of BB (S&P) or Ba (Moody's) or lower is a junk or high
bond with a rating below Baa or BBB.
bond with a stream of coupon payments that are the same throughout the life of the bond.
Limited-tax general obligation bond
A general obligation bond that is limited as to revenue sources.
Express stipulations included in loan agreements that are designed to monitor
bonds with a long current maturity. The "long bond" is the 30-year U.S. government bond.
bonds with a long current maturity. The "long bond" is the 30-year U.S. government bond.
Low-coupon bond refunding
Refunding of a low coupon bond with a new, higher coupon bond.
Floating rate note whose interest rate is reset at more frequent intervals than the rollover
A bond in which the issuer has granted the bondholders a lien against the pledged assets.
State or local governments offer muni bonds or municipals, as they are called, to pay for
Negative Loan Covenants
Loan covenants designed to limit a corporate borrower's behavior
Positive Loan Covenants
Loan covenants expressing minimum and maximum financial measures
A bond that is selling for more than its par value.
A part of the indenture or loan agreement that limits certain actions a company takes
Restriction on a firm to protect bondholders.
A bond that will make only one payment of principal and interest. Also called a zerocoupon
A bond that the holder may choose either to exchange for par value at some date or to extend for a
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