Matching
Match the following definitions with the proper terms.
Premises:
Long-term debt instruments
Bonds that allow the issuing corporation to retire the bonds prior to their maturity date
A fund established for the purpose of putting cash in to pay off bonds when due
The book value of bonds (principal plus premium or principal less discount)
The removal of the bond liability from the company's books when paid
Bonds secured by the pledge of securities (i.e., stocks, bonds of another company)
Cost incurred in issuing bonds (i.e., legal and accounting fees, printing costs)
Bonds that give the bondholder the right to exchange their bonds for common stock under specified conditions
A bond contract
Bearer bonds
Responses:
Bond indenture
Bond issue costs
Bond retirement
Bond sinking fund investment
Bonds payable
Collateral trust bonds
Callable bonds
Carrying value of bonds
Convertible bonds
Coupon bonds
Correct Answer:
Premises:
Responses:
Bearer bonds
Coupon bonds
A bond contract
Bond indenture
Bonds that allow the issuing corporation to retire the bonds prior to their maturity date
Callable bonds
Long-term debt instruments
Bonds payable
The book value of bonds (principal plus premium or principal less discount)
Carrying value of bonds
A fund established for the purpose of putting cash in to pay off bonds when due
Bond sinking fund investment
Bonds secured by the pledge of securities (i.e., stocks, bonds of another company)
Collateral trust bonds
The removal of the bond liability from the company's books when paid
Bond retirement
Bonds that give the bondholder the right to exchange their bonds for common stock under specified conditions
Convertible bonds
Cost incurred in issuing bonds (i.e., legal and accounting fees, printing costs)
Bond issue costs
Premises:
Bearer bonds
A bond contract
Bonds that allow the issuing corporation to retire the bonds prior to their maturity date
Long-term debt instruments
The book value of bonds (principal plus premium or principal less discount)
A fund established for the purpose of putting cash in to pay off bonds when due
Bonds secured by the pledge of securities (i.e., stocks, bonds of another company)
The removal of the bond liability from the company's books when paid
Bonds that give the bondholder the right to exchange their bonds for common stock under specified conditions
Cost incurred in issuing bonds (i.e., legal and accounting fees, printing costs)
Responses:
Coupon bonds
Bond indenture
Callable bonds
Bonds payable
Carrying value of bonds
Bond sinking fund investment
Collateral trust bonds
Bond retirement
Convertible bonds
Bond issue costs
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