Examlex
In which of the following ways is exercise effective in reducing risk of cardiovascular disease?
Convertibles
Convertibles are bonds or preferred stocks that can be converted into a predetermined number of common stock or equity shares.
Coupon Rate
The percentage rate at which a bond's face value accrues interest each year.
Straight Debt
A fixed-income security, such as a bond, that has a predetermined interest rate, maturity, and principal repayment schedule.
Credit Default Swap
A specific type of credit derivative where the underlying reference asset is a credit obligation such as a bond or a bank loan of a specific company. One counterparty (the protection buyer) makes a periodic payment (the credit default swap premium) to the second counterparty (the protection seller). If the underlying reference asset suffers a credit event such as bankruptcy, the protection seller will make a payment to the protection buyer. Credit default swaps allow protection buyers to hedge themselves against credit risk, and protection sellers to invest based on their assessment of credit risk.
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