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Matching Exercise: Match the type of bond to its definition. Matching Exercise: Match the type of bond to its definition. a) The Catastrophe Bond: (Click to select) b) A Warrant Bond: (Click to select) c) An Income bond: (Click to select) d) A Convertible bond: (Click to select) e) A Put bond: (Click to select)

User Absence
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Answer:

The Catastrophe Bond: covers hurricanes and earthquakes in the U.S.

b) A Warrant Bond: gives the buyer of a bond the right to purchase shares of stock in the company at a fixed price.

An Income bond: states that the bond's coupon payment depends on company income.

c)

Put Bond : allows the holder to force the issuer to buy back the bond at a stated price.

Convertible bond : can be swapped for a fixed number of shares of stock anytime before maturity at the holder's option. .

Step-by-step explanation:

A catastrophe bond debt instrument usually used by insurance companies. They are usually high yield. The issuer of this type of bond receives money only if specified conditions occur e.g. flood

User Jyoti Duhan
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