Match These Terms with Their Definitions

Match these terms with their definitions.
-The use of borrowed capital to produce more income than needed to pay the interest on the debt.

A) Bond
B) Contract, coupon, stated rate
C) Discount
D) Effective interest rate method
E) Face value, par value, principal
F) Interest amortization
G) Lease
H) Lessee
I) Lessor
J) Leverage
K) Long-term debt
L) Market rate, yield
M) Maturity
N) Premium
O) Straight-line method

Correct Answer:

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