Match the term and the definition.Not all definitions will be used.
_____ Convertibility
_____ Coupon rate
_____ Discount
_____ Callability
_____ Maturity
_____ Market interest rate
_____ Straight-line amortization
_____ Premium
A.A bond feature that changes the interest rate on the bond with market conditions.
B.When a bond is issued for a price less than its face value.
C.Also known as the face value or par value of a bond.
D.Refers to the percent of company debt that is long-term instead of current.
E.A bond feature that allows creditors to exchange the bond for company stock.
F.Spreads a bond discount or premium evenly over the lifetime of the bond.
G.Another name for the stated interest rate on a bond.
H.A bond feature that lets creditors examine financial data and demand new loan conditions.
I.The amount a company receives when it sells a bond; also known as issue price.
J.The face value of a bond multiplied by the percent of its life that has passed.
K.When a bond is issued for a price greater than its face value.
L.A bond feature that allows the borrowing company to pay off a bond whenever it wishes.
M.Also known as the yield of a bond.
N.The time at which the face value of a bond must be paid to the lender.
O.Is multiplied by the market interest rate to calculate the interest expense on a bond.
P.Spreads the face value of the bond evenly over the lifetime of the bond.
Q.The percent of interest expense that is actually paid out to the creditor.
Correct Answer:
Verified
Q97: If a company records a discount or
Q98: The times interest earned ratio shows the
Q99: On maturity,the carrying value of a bond
Q100: A secured loan means that the borrower
Q101: Match the term and the definition.Not all
Q102: Bonds with a stated interest rate of
Q103: On January 1,2009,a company sells a
Q104: Match the term and the definition.Not all
Q105: On January 1,2009,a company sells a
Q121: Multiple terms or descriptions are used to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents