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Match Each of the Appropriate Definitions with Terms

Question 167

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Match each of the appropriate definitions with terms

Premises:
Bonds that can be exchanged by the bondholders for a fixed number shares of the issuing corporation's common stock.
An obligation requiring a series of periodic payments to the lender.
An accounting method that allocates interest expense over the bonds' life in a way that yields a constant rate of interest.
Bonds that are scheduled for maturity on one specified date.
Bonds with interest coupons attached to their certificates; the bondholders detach the coupons when they mature and present them to a bank or broker for collection.
Bonds that are payable to whoever holds them; also called unregistered bonds.
Bonds that are backed by the issuer's general credit standing.
The contract between the bond issuer and the bondholders; it identifies the rights and obligations of the parties.
Bonds that mature at more than one date and are usually paid over a number of periods.
The interest rate that borrowers are willing to pay and lenders are willing to accept for a particular bond at its risk level.
Responses:
Bond indenture
Term bonds
Bearer bonds
Coupon bonds
Market rate
Unsecured bonds
Convertible bonds
Effective interest rate method
Installment note
Serial bonds

Correct Answer:

Bonds that can be exchanged by the bondholders for a fixed number shares of the issuing corporation's common stock.
An obligation requiring a series of periodic payments to the lender.
An accounting method that allocates interest expense over the bonds' life in a way that yields a constant rate of interest.
Bonds that are scheduled for maturity on one specified date.
Bonds with interest coupons attached to their certificates; the bondholders detach the coupons when they mature and present them to a bank or broker for collection.
Bonds that are payable to whoever holds them; also called unregistered bonds.
Bonds that are backed by the issuer's general credit standing.
The contract between the bond issuer and the bondholders; it identifies the rights and obligations of the parties.
Bonds that mature at more than one date and are usually paid over a number of periods.
The interest rate that borrowers are willing to pay and lenders are willing to accept for a particular bond at its risk level.
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