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Match Each of the Following Characteristic with the Appropriate Bond

Question 192

Matching

Match each of the following characteristic with the appropriate bond classifications

Premises:
Portions of the bond mature in periodic installments.
The principle of the bond.
Bonds that are secured by a lien against specific assets.
Bonds that can be exchanged for a predetermined number of shares of stock.
Bonds whose marketability is based on the general credit rating of the issuing company.
A document that defines the rights of the bond holder.
Bonds that the company has the right to retire before their maturity date.
Bonds on which no interest is paid until the maturity date.
The rate of interest the bond issuer has agreed to pay until maturity.
The market rate of interest at the time a bond is sold.
Responses:
Debenture bonds
Mortgage bonds
Bond Indenture
Par Value
Nominal rate
Zero-coupon bonds
Callable bonds
Convertible bonds
Serial bonds
Effective Interest rate

Correct Answer:

Portions of the bond mature in periodic installments.
The principle of the bond.
Bonds that are secured by a lien against specific assets.
Bonds that can be exchanged for a predetermined number of shares of stock.
Bonds whose marketability is based on the general credit rating of the issuing company.
A document that defines the rights of the bond holder.
Bonds that the company has the right to retire before their maturity date.
Bonds on which no interest is paid until the maturity date.
The rate of interest the bond issuer has agreed to pay until maturity.
The market rate of interest at the time a bond is sold.
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