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Match the Following Terms with the Descriptions Below

Question 46

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Match the following terms with the descriptions below.

Premises:
A bond feature that allows the bondholder to exchange the bond for a specified number of common or preferred stock.
A long-term note issued to the public.
A bond secured with real estate.
A bond that allows the company issuing the bond to buy the bond back at a set price.
Unsecured bonds whose repayment ranks after other debt securities in the event the firm is liquidated.
A bond that is payable to whomever has physical possession of the bond.
A bond issue that has specific portions of the bond issue coming due periodically over the life of the bond issue.
A bond that pledges specific assets of the corporation to the bondholders in the event the company defaults on the bond issue.
Bonds with no specific assets pledged as collateral.
A bond contract.
Bonds that are numbered and made payable in the name of the bondholders.
Restrictions place on the borrowing company to protect the lender.
Responses:
Covenants
Subordinated bonds
Serial bond
Convertible bond
Debenture bonds
Secured bond
Bond
Registered bonds
Callable bond
Mortgage bonds
Bearer bond
Bond indenture

Correct Answer:

A bond feature that allows the bondholder to exchange the bond for a specified number of common or preferred stock.
A long-term note issued to the public.
A bond secured with real estate.
A bond that allows the company issuing the bond to buy the bond back at a set price.
Unsecured bonds whose repayment ranks after other debt securities in the event the firm is liquidated.
A bond that is payable to whomever has physical possession of the bond.
A bond issue that has specific portions of the bond issue coming due periodically over the life of the bond issue.
A bond that pledges specific assets of the corporation to the bondholders in the event the company defaults on the bond issue.
Bonds with no specific assets pledged as collateral.
A bond contract.
Bonds that are numbered and made payable in the name of the bondholders.
Restrictions place on the borrowing company to protect the lender.
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