Bonds Terminology O Bond- Security that obligates the issuer to make specified payments to the bondholder S Coupon- The interest payments made to the bondholder OFace Value(Par Value or Maturity Value)-Payment at the maturity of the bond COupon rate- Annual interest payment, as a percentage of face value Irwin/McGraw-Hill CThe McGraw-Hill Companies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 4- 3 Irwin/McGraw-Hill Bonds Terminology Bond - Security that obligates the issuer to make specified payments to the bondholder. Coupon - The interest payments made to the bondholder. Face Value (Par Value or Maturity Value) - Payment at the maturity of the bond. Coupon Rate - Annual interest payment, as a percentage of face value