Fixed-Income Instrument Features

Free CFA Level I lesson in Fixed Income. 9 min read, ~1,422 words.

Core features: issuer, maturity, par value, coupon rate and frequency, currency, seniority, embedded options. Indenture = legal contract between issuer and bondholders, enforced by a trustee. Affirmative covenants tell the issuer what it MUST do (pay coupons, file statements, maintain insurance). Negative covenants tell the issuer what it must NOT...

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