Matching
Match each of the appropriate definitions with terms.
Premises:
The contract between the bond issuer and the bondholder(s) that identifies the rights and obligations of the parties.
The net amount at which bonds are reported on the balance sheet.
Bonds that have specific assets of the issuer pledged as collateral.
Bonds that give the issuer an option of retiring them at a stated dollar amount prior to maturity.
The amount by which the bond issue (selling) price exceeds the bond par value.
Bonds that require the issuer to create a fund of assets at specified amounts and dates to repay the bonds at maturity.
The ratio of total liabilities to total stockholders' equity.
The interest rate specified in the bond indenture.
The amount by which the bond par value exceeds the bond issue (selling) price
A series of equal payments at equal time intervals.
Responses:
Premium on bonds
Discount on bonds
Sinking fund bonds
Bond indenture
Secured bonds
Contract rate
Callable bonds
Debt-to-equity ratio
Carrying value
Annuity
Correct Answer:
Premises:
Responses:
The contract between the bond issuer and the bondholder(s) that identifies the rights and obligations of the parties.
The net amount at which bonds are reported on the balance sheet.
Bonds that have specific assets of the issuer pledged as collateral.
Bonds that give the issuer an option of retiring them at a stated dollar amount prior to maturity.
The amount by which the bond issue (selling) price exceeds the bond par value.
Bonds that require the issuer to create a fund of assets at specified amounts and dates to repay the bonds at maturity.
The ratio of total liabilities to total stockholders' equity.
The interest rate specified in the bond indenture.
The amount by which the bond par value exceeds the bond issue (selling) price
A series of equal payments at equal time intervals.
Premises:
The contract between the bond issuer and the bondholder(s) that identifies the rights and obligations of the parties.
The net amount at which bonds are reported on the balance sheet.
Bonds that have specific assets of the issuer pledged as collateral.
Bonds that give the issuer an option of retiring them at a stated dollar amount prior to maturity.
The amount by which the bond issue (selling) price exceeds the bond par value.
Bonds that require the issuer to create a fund of assets at specified amounts and dates to repay the bonds at maturity.
The ratio of total liabilities to total stockholders' equity.
The interest rate specified in the bond indenture.
The amount by which the bond par value exceeds the bond issue (selling) price
A series of equal payments at equal time intervals.
Responses:
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