Short Answer
Choose the appropriate letter to match the term and the definition.Not all definitions will be used.
Term:
1._____ Convertible
2._____ Carrying value
3._____ Discount
4._____ Callable
5._____ Maturity
6._____ Market interest rate
7._____ Stated interest rate
8._____ Premium
Definition:
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.A bond with the feature that allows creditors to exchange the bond for company stock.
E.The interest rate printed on the bond certificate.
F.A bond with the feature that lets creditors examine financial data and demand new loan conditions.
G.The amount a company receives when it sells a bond; also known as issue price.
H.When a bond is issued for a price greater than its face value.
I.A bond with the feature that allows the borrowing company to pay off a bond whenever it wishes.
J.Rate of interest that investors demand from a bond.
K.The time at which the face value of a bond must be paid to the lender.
L.Is multiplied by the market interest rate to calculate the (effective)interest expense on a bond.
Correct Answer:

Verified
1.D
2.L
3....View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
2.L
3....
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q10: Which of the following accounts could have
Q65: Which of the following would not be
Q202: The straight-line method of amortization allocates the
Q204: Use the information above to answer the
Q208: In October,you sign a note for $50,000
Q210: When the effective-interest method of amortization is
Q210: Unearned revenues are liabilities because:<br>A) no cash
Q211: The times interest earned ratio for Bodhaine's
Q212: On January 1,ABC,Inc.,issued $100,000 of 10%,5year bonds
Q213: A 6-month note is issued on November