the legal opinion concerning a municipal bondissue. Bond covenant A contractual provision in a bond indenture. A positive covenant requires certain actions, and a negative covenant limits certain actions. Bond crowd Members of the stock exchange who transact bondorders on the floor of the exchange. Bond discount The difference by which a bond'smarket price is lower than its face value. The antithesis of a bond premium, which prevails when the market price of a bond is higher than its face value. See: Original issue discount. Bond-equivalent basis The method used for computing the bond-equivalent yield. Bond equivalent yield Bond yield calculated on an annual percentage rate method. Differs from annual effective yield. Bond fund A mutual fund that emphasizes incomeconsistent with risk, rather than growthby investing in corporate, municipal, or US government debtobligations, or some combination of them. Bond indenture Contract that sets forth the promises of a bond issuer and the rights of investors. Bond indexing Designing a bond portfolio so that its performance will match the performance of some bondindex. Bond market association An international trade association of broker/dealers and banks in US government and federal agencysecurities, municipal securities, mortgage-backed securities, and money market securities. Bond mutual fund A mutual fund which primarily or exclusively holds bonds. Bond of Indemnity An insurance policy that indemnifies the corporation, the shareholder and the Transfer Agent against any and all claims arising from the replacement by the Transfer Agent of certificates lost or stolen. Bond points A conventional unit of measure for bond prices set at $1 and equivalent to 1% of the $100 face value of the bond. A price of 80 means that the bond is selling at 80% of its face or par value. Bond power A form used in the transfer of registered bonds from one owner to a different owner. Bond premium See: Bond discount Bond rating A rating based on the possibility of default by a bondissuer. The ratings range from AAA (highly unlikely to default) to D (in default). See: Rating, investment grade. Bond ratio The percentage of a company'scapitalization represented by bonds. The ratio is calculated by dividing the total bonds due after one year by that same figure plus all other equity. See: Debt-to-equity-ratio. Bond swap The sale of one bondissue and purchase of another bond issue simultaneously. See: Swap; swap order. Bond value With respect to convertible bonds, the value the security would have if it were not convertible. That is, the market value of the bondminus the value of the conversion option. Bondholder A firm often has stockholders and bondholders. In a liquidation, the bondholders have first priority. BONDPAR A system that monitors and evaluates the performance of a fixed income portfolio, as well as the individual securities held in the portfolio. BONDPAR decomposes the return into the elements beyond the manager's control--such as the interest rate environment and client-imposed duration policy constraints--and those that the management process contributes to, such as interest rate management, sector/quality allocations, and individual bond selection. Bonds Enabling Annual Retirement Savings (BEARS) Holders of BEARS receive the