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Match the Following Definitions with the Appropriate Term

Question 234

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Match the following definitions with the appropriate term

Premises:
Bonds that have specific assets of the issuer pledged as collateral.
A series of equal payments at equal time intervals.
The amount by which the bond issue (selling) price exceeds the bond par value.
Bonds that give the issuer an option of retiring them at a stated dollar amount prior to maturity.
The interest rate specified in the bond indenture.
The contract between the bond issuer and the bondholder(s) that identifies the rights and obligations of the parties.
Bonds that require the issuer to create a fund of assets at specified amounts and dates to repay the bonds at maturity.
The net amount at which bonds are reported on the balance sheet.
The ratio of total liabilities to total stockholders' equity.
The amount by which the bond par value exceeds the bond issue (selling) price
Responses:
Discount on bonds
Callable bonds
Annuity
Debt-to-equity ratio
Sinking fund bonds
Secured bonds
Carrying value
Premium on bonds
Bond indenture
Contract rate

Correct Answer:

Bonds that have specific assets of the issuer pledged as collateral.
A series of equal payments at equal time intervals.
The amount by which the bond issue (selling) price exceeds the bond par value.
Bonds that give the issuer an option of retiring them at a stated dollar amount prior to maturity.
The interest rate specified in the bond indenture.
The contract between the bond issuer and the bondholder(s) that identifies the rights and obligations of the parties.
Bonds that require the issuer to create a fund of assets at specified amounts and dates to repay the bonds at maturity.
The net amount at which bonds are reported on the balance sheet.
The ratio of total liabilities to total stockholders' equity.
The amount by which the bond par value exceeds the bond issue (selling) price
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