€ a bankers acceptance is a short term debt guaranteed by the borrowers bank that issold at a discount and that mature at face value. commercial paper is a one-year or less unsecured promissory note issued by acorporation and backed by financial assets, sold at a discount and that mature at facevalue. first mortgage bonds are the senior securities of a company because they constitute a firstcharge on the companys assets, earnings and undertakings before unsecured currentliabilities are paid. a collateral trust bond is secured, not by a pledge of real property, as in a mortgagebond, but by a pledge of securities or collateral. an equipment trust certificate pledges equipment as security instead of real property.these certificates are usually issued in serial form, with a set amount that matures eachyear. subordinated debentures are junior to other securities issued by the company and otherdebts assumed by the company. floating-rate bonds automatically adjust to changing interest rates. they can be issuedwith longer terms than more conventional issues. a corporate note is an unsecured promise made by a borrower to pay interest and repaythe funds borrowed at a specific date or dates. corporate notes rank behind all otherfixedinterest securities of the borrower. a strip bond is created when a dealer acquires a block of high-quality bonds andseparates the individual future-dated interest coupons from the rest of the bond. thebonds are then sold at significant discounts to their face value. holders of strip bondsreceive no interest payments; instead, the income earned is considered interest ratherthan a capital gain. foreign bonds are issued in a currency and country other than the issuers, which allowsthe issuer access to sources of capital in many other countries. eurobonds are issued and sold outside a domestic market and are typically denominatedin a currency other than that of the domestic market.
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