Chapter 6

Securities that sell for less than their par values

Discounted Securities
The date on which the principle amount of a debt is due

Maturity Date
______ Debt Holders do not have voting rights, therefore they do not have control of the firm

Corporate
discounted securities issued by the U.S. government to finance operations

Treasury bills
Types of debt
- 1. Short-term debt
- 2. Treasury bills
- 3. Repurchase Agreement
- 4. Federal Funds
- 5. Banker's Acceptance
- 6. Commercial Paper
- 7. Certificate of Deposit
- 8. Eurodollar Deposit
- 9. Money Market Mutual Funds
- 10. Long-Term debt
- 11. Term Loan
- 12. Bond
An agreement where one firm sells some of its financial assets to another firm with a promise to repurchase the securities at a higher price at a later date.

Repurchase agreement
Overnight loans from one bank to another

Fed funds
A postdated check

bankers acceptance
A type of promissory note, or large IOU, issued by large, financially sound firms

Commercial paper
A time deposit at a bank or other financial intermediary

Certificate of Deposit
a deposit in a bank outside the U.S. that is not converted into the currency of the foreign country

Eurodollar deposit
Money market mutual funds

investment funds that are pooled and managed by firms that specialize in investing money for others for the purpose of investing in short-term financial assets

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Anonymous

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Card Set

Chapter 6

Description

Bond Valuation

Updated

2010-03-28T18:49:14Z

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