Chapter 11 Learning Demonstration: Investment Basics and Bonds

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Across
  1. 1. A financially independent firm that acts as the bondholder's representative
  2. 5. Repaid with money made from the reason that the bond was issued
  3. 8. A corporate bond secured by the various assets of the issuing firm
  4. 10. The dollar amount the bondholder will receive at the bond's maturity date
  5. 12. A bond from a corporation
  6. 15. The higher the risk, the higher the potential return, and the lower the risk, the lower the return
  7. 17. A high-risk investment in which the investor hopes to make a significant profit in a short period of time
  8. 18. A legal document that details the conditions of the bond
  9. 19. A bond that can be converted to ownership in a company
  10. 20. An account set up, by law, so the corporation has to save up money to pay back interest
Down
  1. 2. A bond that is registered in the owner's name by the issuing company
  2. 3. A corporation can pay the bonds before the maturity date
  3. 4. A bond in which the collateral for that bond is the general budget
  4. 6. bond A bond that is registered for principal only, not for the interest
  5. 7. The rate of return earned by an investor who holds a bond for a stated period of time
  6. 9. A bond that is only backed by the reputation of the issuing company
  7. 11. The date money will be paid back to the bondholder
  8. 13. A risky, corporate bond that pays higher interest, but has a higher risk of default
  9. 14. The ability to buy or sell an investment without affecting the value of the investment
  10. 16. The act of spreading out your assets or having many different types of investments