Question: What do you mean by term bonds?
Answer: The bond or issue which has fixed term are known as term bonds.
Question: How does the corporate bonds maturity can change or updated?
Answer: Corporate bonds which sometimes also referred to as “corporates� are typically term bonds, which are usually arranged such a way that the issuing firm either can or must retire the debt early, in full or in part. For instance, - Call privileges: In this case it gives the issuer a call privilege, which allows the issuing firm to redeem/cease the bond before the scheduled maturity under certain conditions.
Question: Can Municipal bonds or U.S. government can have call privileges?
Answer: It is still seen that Municipal bonds can have call privileges but not the U.S. government. These call privilege bonds are also known as callable bond.
Question: What are the sinking fund provisions in case of Fixed Income or bond market?
Answer: Many industrials and some utilities have sinking-fund provisions, based on that it is a mandate that the firm retire a substantial portion of the debt, based on some prearranged schedule, during its life and before the stated maturity.