Provide an explanation of the basic bond terminology and features

What will be an ideal response?

Answer: A bond has a par value, or face value, which is the amount that will be returned to the bondholder at maturity. Bonds pay a percentage of their par value annually in the form of coupon interest rates. A legal agreement, called an indenture, is created between the issuing firm and the bond trustee who represents the bondholders. Bonds have a call provision to recall bonds when the interest rates drop so the issuer can make more money. To protect the issuer and the investor, a sinking fund may be established by the issuer to set aside money to pay off bonds at maturity.