Loan notes are also known as corporate bonds , loan notes, or loan stock:
●Long term debt capital
●Traded on stock markets
●May be secured or unsecured
●May be redeemable or irredeemable
—Irredeemable debt is not repayable at any specified time in the future. Instead, interest is payable in perpetuity.
—Redeemable debt is the principal will be repayable at a future date.
●Nominal value: usually $100 each （face/par value）
●Coupon rate: interest is paid at a stated coupon on nominal value.
●Interest yield: investor required return
●Market value: Present value of future cash flow discounted by investor required return, i.e. interest yield
●Deep discounted bond: issued at discount to nominal value and usually carry a lower interest rate than conventional bond
●Zero coupon bond: issued at discount to redemption value, and no interest is paid. It is extreme example of deep discounted bond.