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Match the Following Definitions with the Proper Terms

Question 100

Matching

Match the following definitions with the proper terms.

Premises:
The interest rate a corporation is willing to pay and investors will accept.
Bonds for which property is pledged to secure the bondholders' claims.
The amount the company must pay for the bond when it is called.
Unsecured bonds backed only by a corporation's general credit.
Bonds issued at one time but payable over a period of time.
Bonds issued to a party whose name is listed in the corporation's records.
The excess of the price paid over the face value of a bond.
Using borrowed funds to earn a profit greater than the interest paid on borrowing.
The excess of the face value over the price received by a company for bonds.
The contractual interest specified on the bond.
Responses:
leveraging
premium on bonds payable
registered bonds
market interest rate
face interest rate
secured bonds
call price
serial bonds
discount on bonds payable
debentures

Correct Answer:

The interest rate a corporation is willing to pay and investors will accept.
Bonds for which property is pledged to secure the bondholders' claims.
The amount the company must pay for the bond when it is called.
Unsecured bonds backed only by a corporation's general credit.
Bonds issued at one time but payable over a period of time.
Bonds issued to a party whose name is listed in the corporation's records.
The excess of the price paid over the face value of a bond.
Using borrowed funds to earn a profit greater than the interest paid on borrowing.
The excess of the face value over the price received by a company for bonds.
The contractual interest specified on the bond.
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