Short Answer
Match the definitions with the appropriate terms. Definition
A. The issue price of the bond.
B. A cash fund set up to retire bonds.
C. The theoretically correct approach to amortizing bond discount or premium.
D. Involves repayment of the bond in instalments.
E. The bond contract containing legal provisions relating to the bond.
F. None of the above.
Term
____ 1. Equipment trust bond
____ 2. Effective-interest amortization method
____ 3. Current cash equivalent amount
____ 4. Serial bond
____ 5. Ordinary payment bond
6. Debenture
____ 7. Bond sinking fund
____ 8. Straight-line amortization method
____ 9. Indenture
Correct Answer:

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(1) F, (2) C, (3) A,...View Answer
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