Examlex
All of the following are true as they apply to self-instructional training, except that:
Subordinated Debt
A type of debt that ranks below other debts with regard to claims on assets or earnings in the event of a liquidation.
Junk Bonds
High-yield but high-risk bonds issued by companies or entities with lower credit ratings, indicating a higher risk of default.
Zero Coupon Bonds
Pay no coupons at all, but are offered at a substantial discount below their par value and hence provide capital appreciation rather than interest income. Sometimes referred to as “stripped bonds.”
Callable Bond
A bond that can be redeemed by the issuer before its maturity date at a specified call price.
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