Matching
Match each description below to the appropriate term.
Premises:
The book value of bonds payable
The entire principal of the bond is paid back on maturity date
The value of a bond stated on the bond certificate
The legal contract between issuer and bond holder
Allows the issuer to redeem bonds before maturity date
The principal of the bond issue is paid back in installments
Allows the bond holder to exchange bond for shares of stock
Responses:
carrying amount
face value
callable bond
indenture
term bond
convertible bond
serial bond
Correct Answer:
Premises:
Responses:
The book value of bonds payable
The entire principal of the bond is paid back on maturity date
The value of a bond stated on the bond certificate
The legal contract between issuer and bond holder
Allows the issuer to redeem bonds before maturity date
The principal of the bond issue is paid back in installments
Allows the bond holder to exchange bond for shares of stock
Premises:
The book value of bonds payable
The entire principal of the bond is paid back on maturity date
The value of a bond stated on the bond certificate
The legal contract between issuer and bond holder
Allows the issuer to redeem bonds before maturity date
The principal of the bond issue is paid back in installments
Allows the bond holder to exchange bond for shares of stock
Responses:
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