Ch 11-2 Vocab Quiz

5. low-determination, non-transferable bonds issued by the federal government, usually through payroll savings plans
7. life of a bond or length of time funds are borrowed.
10. market in which financial capital is loaned and/or borrowed for more than one year
13. a market in which financial capital is loaned and/or borrowed for one year or less
14. a type of investment, often tax exempt, issued by states and local government
15. United States government obligation with a maturity of 2 to 10 years
18. not subject to tax by federal or state governments
19. formal contract to repay borrowed money and interest on the borrowed money at regular future intervals.

1. low-determination, non-transferable bonds issued by the federal government, usually through payroll savings plans
2. market in which only the original issuer can sell or repurchase a financial asset
3. stated interest on a corporate, municipal or government bond
4. retirement account in the form of a long term time deposit, with annual contributions not taxed until withdrawn during retirement
6. exceptionally risky bond with a Standard & Poor's rating BB or lower that carries a high rate of return as compensation for the higher possibility of non-payment
8. principal of a bond or total amount borrowed
9. bond's annual coupon interest divided by purchase price
11. United States government bond with maturity of 30 years
12. to balance higher levels of risk with larger payoff
16. short-term United States government obligation with a maturity of 4, 13, 26, or 52
17. market in which all financial assets can be sold to someone other than the original issuer
19. person designated to take ownership of an asset if the owner of the asset dies