Define each of the following terms:

Bond; Treasury bond; corporate bond; municipal bond; foreign bond

Par value; maturity date; coupon payment; coupon interest rate

Floating-rate bond; zero coupon bond; original issue discount bond (OID)

Call provision; redeemable bond; sinking fund

Convertible bond; warrant; income bond; indexed bond (also called a purchasing power bond)

Premium bond; discount bond

Current yield (on a bond); yield to maturity (YTM); yield to call (YTC)

Indentures; mortgage bond; debenture; subordinated debenture

Development bond; municipal bond insurance; junk bond; investment-grade bond

Real risk-free rate of interest, r*; nominal risk-free rate of interest, rRF

Inflation premium (IP); default risk premium (DRP); liquidity; liquidity premium (LP)

Interest rate risk; maturity risk premium (MRP); reinvestment rate risk

Term structure of interest rates; yield curve

“Normal” yield curve; inverted (“abnormal”) yield curve