Debt Securities. Corporate, Municipal, and Government

Free FINRA Series 7 (General Securities Representative) lesson in Investment Products and Recommendations. 24 min read, ~3,647 words.

Corporate bond hierarchy: secured (mortgage, equipment trust) unsecured (debenture) subordinated debenture. Conversion parity = conversion ratio x stock price. Convert only when parity exceeds the call price. GO bonds = taxing power. Revenue bonds = project income. Net revenue pledge pays O&M first. TEY = tax-free yield / (1 -...

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