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∙ 13y ago
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What does a bond represent?
A bond represents a company or organizations debt to you the bondholder.
What is the amount paid to purchase a bond that will be repaid at maturity?
Par Value
What does it mean when a bond matures?
When a bond matures, it is at the end of the term and is ready to collect. You can either take the money or open another bond or CD with that money to lock the money away for the same amount of time so that it accrues more money in interest.
What is the name of interest payments that a bondholder receives for purchasing a bond?
Apex- Coupon
Why is a bondholder similar to a bank?
Bondholders loan money to bond issuers just as banks loan money to customers.
Just like CDs bonds reach at which point the amount paid for the bond is returned to the bondholder?
Maturity-apex
What does a bond represent?
A bond represents a company or organizations debt to you the bondholder.
What is the amount paid to purchase a bond that will be repaid at maturity?
Par Value
What does it mean when a bond matures?
When a bond matures, it is at the end of the term and is ready to collect. You can either take the money or open another bond or CD with that money to lock the money away for the same amount of time so that it accrues more money in interest.
What is the name of the payments that a bondholder receives for purchasing a bond?
Apex- Coupon
What is the name of interest payments that a bondholder receives for purchasing a bond?
Apex- Coupon
When is a bond's per value generally repaid?
at maturity
A type of short-term bond that must be repaid within a year or less?
Treasury bill is a type of short-term bond that must be repaid within a year or less.
Why is a bondholder similar to a bank?
Bondholders loan money to bond issuers just as banks loan money to customers.
What happens if you cash in a bond before it matures?
You do not get full value.
What is repaid to the investor on a bond's maturity date?
The principle and interest.
How do savings bonds work?
When you buy a savings bond, you get a coupon payment periodically during the lifetime of the bond (typically 3%-4% of the face value), and when the bond matures, you get the original amount of money you paid back as well as the final coupon payment.
