Examlex
MATCHING
Match the person or term with the with the correct description.
-Trenchard and Gordon
Floating-rate Bonds
Bonds with a variable interest rate that adjusts periodically in accordance with a benchmark interest rate or index.
Convertible Bonds
Bonds that can be converted into a predetermined number of shares of the issuing company's stock at certain times during the bond's life, usually at the discretion of the bondholder.
Interest Rate Risk
The potential for investment losses due to fluctuations in interest rates, which can affect the value of interest-bearing assets like bonds.
Price Appreciation
The increase in the value of an asset or investment over time, not accounting for dividends or interest earned.
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