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Match the Following with the Items Below

Question 122

Matching

Match the following with the items below:

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

Correct Answer:

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