Identify common terms used in bonds and drag the following examples to the appro
ID: 2642202 • Letter: I
Question
Identify common terms used in bonds and drag the following examples to the appropriate term. Natalie reviewed the protective covenants before she purchased ABC bonds Clifton is currently earning 6.5% on his bond investment The yield to maturity is less than the coupon rate C) Julia will receive $1,000 when the bond matures - The yield to maturity is greater than the coupon rate John will receive $55 annually from his bond purchase The market rate on XYZ bond is 4.85% The bond will become due March 31, 2020 Yield to Maturity Premium bond Face value Indenture Current yield Discount bond Coupon Maturity ResetExplanation / Answer
Indenture Natalia reviewed the protective convent before she purchased ABC Bond Current Yield Clifton is currently earning 6.5% on his bond investment Premium Bond The Yield to maturity is less than Coupon rate Face Value Julie will receive $ 1000 when the bond mature Discount Bond The Yield to maturity is greater than Coupon rate Coupon John will receive $ 55 annually from his bond purchase Yield to Maturity The market rate on Bond is 4.85% Maturity The bond will become due March 31 2020