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Match the Following Definitions with the Appropriate Terms

Question 188

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Match the following definitions with the appropriate terms

Premises:
Bonds that are made payable to whoever holds them; also called unregistered bonds.
Bonds that mature at more than one date and are usually paid over a number of periods.
An accounting method that allocates interest expense over the bonds' life in a way that yields a constant rate of interest.
An obligation requiring a series of periodic payments to the lender.
The interest rate that borrowers are willing to pay and that lenders are willing to accept for a particular bond at its risk level.
Bonds that are backed by the issuer's credit standing.
Bonds that can be exchanged by the bondholders for a fixed number shares of the issuing corporation's common stock.
Bonds with interest coupons attached to their certificates; the bondholders detach the coupons when they mature and present them to a bank or broker for collection.
Bonds that are scheduled for payment on one specified date.
The contract between the bond issuer and the bondholders; it identifies the rights and obligations of the parties.
Responses:
Installment note
Bearer bonds
Unsecured bonds
Term bonds
Bond indenture
Effective interest method
Coupon bonds
Market rate
Convertible bonds
Serial bonds

Correct Answer:

Bonds that are made payable to whoever holds them; also called unregistered bonds.
Bonds that mature at more than one date and are usually paid over a number of periods.
An accounting method that allocates interest expense over the bonds' life in a way that yields a constant rate of interest.
An obligation requiring a series of periodic payments to the lender.
The interest rate that borrowers are willing to pay and that lenders are willing to accept for a particular bond at its risk level.
Bonds that are backed by the issuer's credit standing.
Bonds that can be exchanged by the bondholders for a fixed number shares of the issuing corporation's common stock.
Bonds with interest coupons attached to their certificates; the bondholders detach the coupons when they mature and present them to a bank or broker for collection.
Bonds that are scheduled for payment on one specified date.
The contract between the bond issuer and the bondholders; it identifies the rights and obligations of the parties.
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