| bearer bond | A bond issued without record of the owner's name. Whoever holds the bond (the bearer) is the owner.
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| call premium | The price of a call option on common stock.
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| call-protected | Describes a bond that is not allowed to be called, usually for a certain early period in the life of the bond.
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| debenture | An unsecured bond, usually with maturity of 15 years or more. A debt obligation backed by the general credit of the issuing corporation.
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| deep-discount bonds | A bond issued with a very low coupon or no coupon and selling at a price far below par value. When the bond has no coupon, it is also called a purediscount or original-issue-discount bond.
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| deferred call | A provision that prohibits the company from calling the bond before a certain date. During this period the bond is said to be call protected.
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| floating-rate bonds | A debt obligation with an adjustable coupon payment.
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| income bonds | A bond on which the payment of income is contingent on sufficient earnings. Income bonds are commonly used during the reorganization of a failed or failing business.
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| indenture | Written agreement between the corporate debt issuer and the lender, setting forth maturity date, interest rate, and other terms.
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| junk bonds | A speculative grade bond, rated Ba or lower by Moody's, or BB or lower by Standard & Poor's, or an unrated bond. Also called a high-yield or low-grade bond.
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| negative covenant | Part of the indenture or loan agreement that limits or prohibits actions that the company may take.
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| original-issue discount bonds | A bond issued with a discount from par value. Also called a deep-discount or pure-discount bond.
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| positive covenant | Part of the indenture or loan agreement that specifies an action that the company must abide by.
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| private placement | The sale of a bond or other security directly to a limited number of investors.
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| protective covenant | A part of the indenture or loan agreement that limits certain actions a company takes during the term of the loan to protect the lender's interest.
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| public issue | Sales of securities to the public.
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| pure-discount bonds | Bonds that pay no coupons and only pay back face value at maturity. Also referred to as "bullets" and "zeros."
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| refunding | The process of replacing outstanding bonds, typically to issue new securities at a lower interest rate than those replaced.
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| zero-coupon bonds | Bonds with no coupons.
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