Term
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Definition
| The amount payable at the maturity of the bond and on which the periodic cash interest payments are computed |
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Term
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Definition
| (bond principal) the maturity amount of the bond |
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Term
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Definition
| (principal) the maturity amount of the bond |
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Term
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Definition
| the rate of cash interest per period stated in the bond contract |
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Term
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Definition
| unsercured bond; no assets are specifically pledged to guarentee repayment |
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Term
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Definition
| may be called for early retirement at the option of the issuer |
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Term
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Definition
| may be converted to other securities of the issuer. usually common stock |
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Term
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Definition
| a bond contract that specifies the legal provisions of a bond issue |
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Term
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Definition
| the bond document that each bond holder receives |
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Term
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Definition
| an independent party appointed to represent the bondholders |
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Term
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Definition
| the stated rate of interest on bonds |
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Term
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Definition
| the current rate of interest on a debt when incurred (yeild of effective interest rate) |
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Term
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Definition
| the difference between the selling price and par when the bond is sold for less than par |
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Term
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Definition
| the difference between the selling price and par when the bond is sold for less than par |
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Term
| straight line ammortization |
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Definition
| a simplified method of amortizing a bond discount or premium that allocates an equal dollar amount to each interest period |
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Term
| effective interest method |
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Definition
| amortizes a bond discount or premium on the basis of the effective interest rate; it is the theoretically preferred method |
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