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Which of the following middle-aged adults is the most likely to experience a midlife crisis?
Bond Rating
A measure of the likelihood of default on payment of interest or principal. Ratings are prepared by rating agencies. The best known agencies are Moody’s and Standard and Poor’s.
Restrictive Covenants
Provisions in a contract or loan agreement that limit the borrower's actions, intended to protect the lender by maintaining the borrower's creditworthiness.
Call Provision
A clause in a bond contract that allows the issuer the right to redeem the bond before its maturity date under specific conditions.
Par Value
The nominal or face value of a bond, share of stock, or coupon as stated by the issuer, often used in the calculation of interest payments and dividends.
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