Examlex
Which of the following is a simple version of a flexible budget?
Deferred Call
Call provision prohibiting the company from redeeming the bond before a certain date.
Coupon Rate
The interest rate on a bond, expressed as a percentage of the bond's face value, paid by the bond issuer to the bondholder at specified intervals.
Zero-Coupon Bond
A bond that does not pay periodic interest, but is issued at a deep discount, with the return being the difference between the purchase price and the face value at maturity.
Stripped Bond
A debt security where the principal and regular coupon payments have been separated and are sold as individual securities.
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