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-If R1 shorts in Figure 8 -2, VR2 .
Coupon Payment
A periodic interest payment made to bondholders during the life of a bond.
Income Bond
A type of bond that only pays interest if the issuer has sufficient earnings to cover the interest payments.
Protective Covenants
Conditions written into financial agreements that the issuer must follow, such as restrictions on issuing more debt or making capital distributions.
Bondholders
Individuals or entities that own bonds issued by corporations or governments, entitling them to receive fixed interest payments and the return of the principal amount at maturity.
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