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