Match the following terms with the correct definition. a. Convertible bonds b. Premium on bond c. Callable

Question:

Match the following terms with the correct definition.
a. Convertible bonds
b. Premium on bond
c. Callable bonds
d. Debentures
e. Term bonds
f. Serial bonds
g. Discount on bond
h. Stated interest rate
i. Market interest rate
_____1. Bonds that all mature at the same time.
_____2. Interest rate investors are expecting to receive for similar bonds of equal risk.
_____3. Unsecured bonds backed only by the good faith of the borrower.
_____4. Amount of a bond’s issue price over its value.
_____5. Bonds that may be converted into the of the issuing company at the option of the investor.
_____6. Amount of a bond’s value over itsissue price.
_____7. Interest rate that determines the amountof cash interest the borrower pays and the investor receives.
_____8. Bonds in the same bond issuance that matureat different times.
_____9. Bonds that the issuer may call or pay off at a specified price before Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...