LEARNING OUTCOMES

The candidate should be able to:

1. describe basic features of a fixed-income security;

2. describe content of a bond indenture;

3. compare affirmative and negative covenants and identify examples of each;

4. describe how legal, regulatory, and tax considerations affect the issuance and trading of fixed-income securities;

5. describe how cash flows of fixed-income securities are structured;

6. describe contingency provisions affecting the timing and/or nature of cash flows of fixed-income securities and identify whether such provisions benefit the borrower or the lender.