Solved

Match Each Description Below to the Appropriate Term

Question 174

Matching

Match each description below to the appropriate term.

Premises:
The face amount of each bond
A form of an interest-bearing note
The return required by the market on the day of issuance
If the contract rate exceeds the effective rate
The rate printed on the bond certificate
If the contract rate is less than the effective rate
The contract between bond issuer and bond purchaser
Responses:
contract rate
effective rate
bond discount
bond premium
bond
bond indenture
principal

Correct Answer:

The face amount of each bond
A form of an interest-bearing note
The return required by the market on the day of issuance
If the contract rate exceeds the effective rate
The rate printed on the bond certificate
If the contract rate is less than the effective rate
The contract between bond issuer and bond purchaser
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