Below are listed key word clues and descriptions. The key word clues relate to different features or aspects of debt. Match the letter of each clue to the most relevant description provided. Use each clue only once.
a. bond
b. callable
c. capital
d. commitment
e. contingency
f. current
g. debenture
h. effective
i. liability
j. maturity value
k. nominal
l. operating
m. secured
n. serial
1. Obligations expected to be discharged within one year
2. A financial instrument that promises to repay principal at maturity and to pay interest each period until then
3. An obligation to convey resources to another entity in the future
4. Debt that is backed up by specific assets of the debtor company
5. A bond backed only by the general creditworthiness of the issuing company
6. Bonds that can be reacquired at the request of the issuing company
7. The amount repaid to bondholders at the end of the bond’s life
8. The rate of interest that determines the amount of cash sent to bondholders each period
9. Bonds that mature a portion at a time over the life of the issue
10. The actual (or real) rate of return earned by the holder of a bond
11. A type of lease that results in a liability being reported on the balance sheet
12. An existing condition that may result in an economic effect later
13. A promise to engage in some future economic activity
14. A lease that does not result in a liability being reported on the balance sheet