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Apr 11

Characteristics of a bond??

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Apr 11
1. Face value: The amount of money that the bond issuer agrees to repay the bondholder at maturity.

2. Coupon rate: The interest rate that the bond issuer agrees to pay the bondholder at regular intervals, typically semi-annually.

3. Maturity date: The date on which the bond issuer agrees to repay the face value of the bond to the bondholder.

4. Issuer: The entity or organization that issues the bond and is responsible for repaying the bondholder.

5. Credit rating: A measure of the issuer's creditworthiness, which indicates the likelihood of the issuer defaulting on the bond.

6. Yield: The rate of return on the bond, calculated as the annual interest payments divided by the bond's current market price.

7. Liquidity: The ease with which the bond can be bought or sold on the secondary market.

8. Call provision: A feature that allows the issuer to redeem the bond before its maturity date, typically at a predetermined price.

9. Convertibility: A feature that allows the bondholder to convert the bond into a specified number of shares of the issuer's stock.

10. Covenants: Restrictions or requirements imposed by the issuer on the bondholder, such as limits on the issuer's debt levels or requirements for maintaining certain financial ratios.

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