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Match Each Definition with Its Term

Question 192

Matching

Match each definition with its term

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

Correct Answer:

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