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Ch 14 Bonds - Coggle Diagram

- - - - Referred to as an interest annuity
        
        Rate is printed on the bond certificate
  - - - Amount is printed on the bond certificate
- - - - When there is specific collateral associated with a loan it is considered to be a secured loan
        
        A secured loan is less risky, so the lender is more likely to charge a lower interest rate
- - - - Failure to meet obligations to bondholders puts the organization at peril of bankruptcy
        
        Bondholders can sell their bonds to other investors in bond markets the same way the stock are sold in equity markets