UIUC Fin 300 Exam 2 Terms || Already Graded A+.
Trade based on 30/360 days correct answers Corporate and Municipal Bonds
Trade based on actual days correct answers Treasury bonds
Can mature on any business day correct answers Corporate bonds
Mature on 15th or last day of the month correct answers Treasury bonds
Settlement date is T + 2 correct answers Corporate bonds
Settlement date is T + 1 correct answers Treasury bonds
Priced in % of face correct answers Corporate and Treasury bonds
More risky, backed by revenues of a project correct answers Revenue bonds
Less risky, backed by ability of municipality to tax correct answers General obligation bonds
interest earned since last coupon payment correct answers Accrued interest
Quoted price of a bond correct answers Base Price
A contract to pay a series of cash flows specified by the principal and coupon and effective until
maturity correct answers Bond
, Calculated by dividing the difference between the face value of the bond and the purchase price
of the bond by the price of the bond. Used to determine annual yield on a discount, zero coupon
bond. correct answers Bond equivalent rate
Price is more than principal, yield is less than coupon correct answers Trading at premium
Price is less than principal, yield is more than coupon correct answers Trading at discount
Price at which the issuer of a callable bond has the right to buy the bond back from an investor
correct answers Call price
Bond can be bought back by the corporate issuer prior to maturity correct answers Call
provisions
A bond that the issuer may redeem before it reaches its maturity date. Allows issuing company to
pay off their debt early. correct answers Callable bond
Price at which a convertible bond can be converted into common stock. correct answers
Conversion Price
Number of common shares received at the time of conversion for each convertible security. Par
value / conversion price. correct answers Conversion ratio
Amount an investor would receive if a convertible security is changed into common stock.
Conversion ratio * market price correct answers Conversion value
A bond that can be converted into a predetermined number of common shares. Can be done at
the discretion of the bondholder. correct answers Convertible Bond
Trade based on 30/360 days correct answers Corporate and Municipal Bonds
Trade based on actual days correct answers Treasury bonds
Can mature on any business day correct answers Corporate bonds
Mature on 15th or last day of the month correct answers Treasury bonds
Settlement date is T + 2 correct answers Corporate bonds
Settlement date is T + 1 correct answers Treasury bonds
Priced in % of face correct answers Corporate and Treasury bonds
More risky, backed by revenues of a project correct answers Revenue bonds
Less risky, backed by ability of municipality to tax correct answers General obligation bonds
interest earned since last coupon payment correct answers Accrued interest
Quoted price of a bond correct answers Base Price
A contract to pay a series of cash flows specified by the principal and coupon and effective until
maturity correct answers Bond
, Calculated by dividing the difference between the face value of the bond and the purchase price
of the bond by the price of the bond. Used to determine annual yield on a discount, zero coupon
bond. correct answers Bond equivalent rate
Price is more than principal, yield is less than coupon correct answers Trading at premium
Price is less than principal, yield is more than coupon correct answers Trading at discount
Price at which the issuer of a callable bond has the right to buy the bond back from an investor
correct answers Call price
Bond can be bought back by the corporate issuer prior to maturity correct answers Call
provisions
A bond that the issuer may redeem before it reaches its maturity date. Allows issuing company to
pay off their debt early. correct answers Callable bond
Price at which a convertible bond can be converted into common stock. correct answers
Conversion Price
Number of common shares received at the time of conversion for each convertible security. Par
value / conversion price. correct answers Conversion ratio
Amount an investor would receive if a convertible security is changed into common stock.
Conversion ratio * market price correct answers Conversion value
A bond that can be converted into a predetermined number of common shares. Can be done at
the discretion of the bondholder. correct answers Convertible Bond
