Corporate Bonds: Rapid Fire

What this video covers

• Why every corporate bond defaults to $1,000 par and semiannual interest unless the question says otherwise, and how to move the decimal on percentage-of-par quotes
• The bankruptcy liquidation priority from secured bondholders down to common stockholders, and why debenture simply means unsecured
• Why equipment trust certificates rank among the safest corporate bonds, not the riskiest, and the exam trap the test-makers love to set
• How convertible bonds carry a lower coupon in exchange for the holder's option to convert, and when forced conversion becomes the rational choice
• The tax nightmare of phantom income on zero-coupon bonds and OID accretion, and why retirement accounts are their natural home
• Where the investment-grade cliff drops at BBB-/Baa3, what a fallen angel is, and why ratings measure default risk only
• The 270-day ceiling on commercial paper for SEC registration exemption, and how exchange-traded notes (ETNs) differ from exchange-traded funds (ETFs) on issuer credit risk
• How the yield ladder climbs on discount bonds and dips on premium bonds, and why yield to call is yield to worst for premium callable bonds