Solved

Match Each of the Following Terms with the Appropriate Definitions

Question 194

Matching

Match each of the following terms with the appropriate definitions

Premises:
Carrying value
Callable bonds
Annuity
Sinking fund bonds
Contract rate
Debt to equity ratio
Bond indenture
Secured bonds
Premium on bonds
Bond
Responses:
The interest rate specified in the bond indenture.
The net amount at which bonds are reported on the balance sheet.
Bonds that require the issuer to create a fund of assets at specified amounts and dates to repay the bonds at maturity.
Bonds that give the issuer an option of retiring them at a stated amount before the date of maturity.
A written promise to pay an amount identified as the par value along with interest at a stated rate.
The difference between the par value of a bond and its higher issue price or carrying value.
The contract between the bond issuer and the bondholder(s); it identifies the rights and obligations of the parties.
A series of equal payments at equal intervals.
The ratio of total liabilities to total equity.
Bonds that have specific assets of the issuer pledged as collateral.

Correct Answer:

Carrying value
Callable bonds
Annuity
Sinking fund bonds
Contract rate
Debt to equity ratio
Bond indenture
Secured bonds
Premium on bonds
Bond
Related Questions

Q184: Unsecured bonds are also called _ and

Q186: A bond with a par value of

Q187: When the bond contract rate of interest

Q190: The interest rate specified in the bond

Q191: The issue price of bonds is found

Q192: The _ amortization method allocates bond interest

Q193: Match each of the following terms with

Q204: _ bonds can be exchanged for a

Q213: _ bonds have an option exercisable by

Q215: Bonds payable to whoever holds them are

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents