Match each description below to the appropriate term (a-g).

-A form of an interest-bearing note
A)Contract rate
B)Effective rate
C)Bond discount
D)Bond premium
E)Bond
F)Bond indenture
G)Principal

Question

Match each description below to the appropriate term (a-g).
​
-A form of an interest-bearing note
A)Contract rate
B)Effective rate
C)Bond discount
D)Bond premium
E)Bond
F)Bond indenture
G)Principal

Quizplus · Accepted Answer

A bond is a form of an interest-bearing note, which means it is a debt security under which the issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay them interest and/or to repay the principal at a later date, termed the maturity date.

Match Each Description Below to the Appropriate Term (A-G)