Matching
Match the following definitions with the appropriate terms
Premises:
1 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.
Bonds that give the issuer an option of retiring them at a stated amount before the date of maturity.
Bonds that require the issuer to create a fund of assets at specified amounts and dates to repay the bonds at maturity.
Bonds that have specific assets of the issuer pledged as collateral.
The ratio of total liabilities to total equity.
The difference between the par value of a bond and its higher issue price or carrying value.
The interest rate specified in the bond indenture.
A written promise to pay an amount identified as the par value along with interest at a stated rate.
The net amount at which bonds are reported on the balance sheet.
Responses:
Secured bonds
Annuity
Premium on bonds
Callable bonds
Contract rate
Bond indenture
Sinking fund bonds
Carrying value
Debt to equity ratio
Bond
Correct Answer:
Premises:
Responses:
1 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.
Bonds that give the issuer an option of retiring them at a stated amount before the date of maturity.
Bonds that require the issuer to create a fund of assets at specified amounts and dates to repay the bonds at maturity.
Bonds that have specific assets of the issuer pledged as collateral.
The ratio of total liabilities to total equity.
The difference between the par value of a bond and its higher issue price or carrying value.
The interest rate specified in the bond indenture.
A written promise to pay an amount identified as the par value along with interest at a stated rate.
The net amount at which bonds are reported on the balance sheet.
Premises:
1 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.
Bonds that give the issuer an option of retiring them at a stated amount before the date of maturity.
Bonds that require the issuer to create a fund of assets at specified amounts and dates to repay the bonds at maturity.
Bonds that have specific assets of the issuer pledged as collateral.
The ratio of total liabilities to total equity.
The difference between the par value of a bond and its higher issue price or carrying value.
The interest rate specified in the bond indenture.
A written promise to pay an amount identified as the par value along with interest at a stated rate.
The net amount at which bonds are reported on the balance sheet.
Responses:
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