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Match the Items Below with the Following

Question 123

Matching

Match the items below with the following

Premises:
bond ratings
operating lease
capital lease
call feature
sinking fund
refunding
Eurobond
yield to maturity
current yield
coupon payment
Responses:
Allows the corporation to retire securities before maturity.
The annualized rate-of-return an investor will receive if he or she holds the bond until it is redeemed.
Are designated by the degree of risk by Standard and Poor's and Moody's Investor Service.
A long-term lease that has many of the characteristics of debt.
A short-term nonbinding obligation that is easily cancelable.
Indicates the annual dollar amount of income from a bond.
A method of retiring bonds in an orderly process over the life of the bond issue.
The process of retiring an old bond issue before maturity and replacing it on the balance sheet with a new bond issue.
Equals the yearly dollar interest payment divided by the current market price.
Bonds payable or denominated in the borrower's currency, but sold outside the country of the borrower.

Correct Answer:

bond ratings
operating lease
capital lease
call feature
sinking fund
refunding
Eurobond
yield to maturity
current yield
coupon payment
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