Bond Principles: Identification- of Bonds Bonds are identified by issuer, coupon rate, and maturity. The face value of a bond is called its par value. e.g. 5 of \Hertz sevens of 03\(Hertz 7s03) .A legal document called the indenture contains the details of the bond issue
Introduction a dollar today is worth more than a dollar tomorrow a safe dollar is worth more than a risky dollar People have different degrees of risk aversion. Some are more willing to take a chance than others A tradeoff exists between risk and return