Match Each Term with the Appropriate Definition

Multiple Choice

Match each term with the appropriate definition.Not all definitions will be used.
-Market interest rate

A) When a bond is issued for a price greater than its face value.
B) Also known as the face value or par value of a bond.
C) Rate of interest that investors demand from a bond.
D) A bond with the feature that allows creditors to exchange the bond for company stock.
E) The amount a company receives when it sells a bond;also known as issue price.
F) The interest rate printed on the bond certificate.
G) The time at which the face value of a bond must be paid to the lender.
H) Is multiplied by the market interest rate to calculate the (effective) interest expense on a bond.
I) A bond feature that changes the interest rate on the bond with market conditions.
J) When a bond is issued for a price less than its face value.
K) A bond with the feature that allows the borrowing company to pay off a bond whenever it wishes.
L) A bond with the feature that lets creditors examine financial data and demand new loan conditions.