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Key Characteristics of Bonds

Author: Sophia Media
Video Transcript
Terms to Know
Callable Bond

A bond that allows the issuer of the bond to retain the privilege of redeeming the bond at some point before the bond reaches its date of maturity.

Coupon Rate

Amount of interest that the bondholder will receive per payment, expressed as a percentage of the par value.

Maturity Date

The final payment date of a loan or other financial instrument.

Par Value

The amount of money a holder will get back once a bond matures.

Sinking Fund

A method by which an organization sets aside money to retire debts.