A bonds refers to the interest payment or payments paid by...

A bond's yield refers to the interest payment or payments paid by a bond. A bond issuer is said to be in default if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issue's restrictive covenants. A bond contract feature that requires the issuer to retire a specified portion of the bond issue each year is called a sinking fund. A bond's call provision gives the issuer the right to call, or redeem, a bond at specific times and under specific conditions.

Transcript

00:01 Hello students, here is a question.

00:02 A bond yield refers to the interest payment or a payment paid by a bond.

00:05 A bond issuer is said to be a defaulter if it does not pay the interest or principal in accordance with the terms of the induced agreement or if they violated one or more the issuer's restrictive convertance.

00:18 A bond contract future that requires an issuer to retire a specified portion of a bond issued each year is called a shrinking fund.

00:26 A bond call provisions gives an issuer to a right to call or redeem the bond at a specific time under the specific condition.

00:34 So, let us discuss the answer for this.

00:36 So, the first is regular interest.

00:43 Regular interest.

00:46 A bond yield refers to the interest payment or a payment paid by a bond.

00:50 This means when that that an investor buy a bond, they will receive a regular interest payment from the bond of issuer and the second is indenture agreement.

01:05 A bond issuer is said to be a default if that does not pay the interest or the principal in accordance with the terms of indenture agreement.

01:13 The indenture agreement is a legal contract that outlines the terms and condition of a bond including the payment schedule.

01:20 Next is restrictive convenience, restrictive covenants.

01:33 So, a bond issuer can also be the default if the violates one or more issuer who is a restrictive covenants...

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