1 Listed below are common terms associated with bonds Bond certificate Bond issue Bond indenture Unsecured bonds Debenture bonds Secured bonds Term bonds Serial bonds Registered bonds Coupon bonds Callable bonds Convertible bonds Face interest rate Market interest rate Effective interest rate Bond premium Bond discount 1 For each of the following statements, identify the term with which it is associated (If two statements apply, choose the category with which it is most closely associated ) 1 Occurs when bonds are sold at more than face value SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 1 2 Rate of interest that will vary depending on economic conditions SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 2 3 Bonds that may be exchanged for common stock SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 3 4 Bonds that are not registered SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 4 5 A bond issue in which all bonds are due on the same date SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 5 6 Occurs when bonds are sold at less than face value SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 6 7 Rate of interest that will be paid regardless of market conditions SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 7 8 Bonds that may be retired at management's option SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 8 9 A document that is evidence of a company's debt SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 9 10 Same as market rate of interest SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 10 11 Bonds for which the company knows who owns them SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 11 12 A bond issue for which bonds are due at different dates SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 12 13 The total value of bonds issued at one time SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 13 14 Bonds whose payment involves a pledge of certain assets SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 14 15 Same as debenture bonds SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 15 16 Contains the terms of the bond issue SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 16 17 Bonds issued on the general credit of the company SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 17 2 Preferred andCommon StockDividendsand Dividend Yield Avaya Corporation had the following stock outstanding from 2011 through 2014 Preferred stock $100par value, 8 percent cumulative, 5,000 shares authorized, issued, and outstanding Common stock $10 par value, 100,000 shares authorized, issued, and outstanding The company paid $30,000, $30,000, $94,000, and $130,000 in dividends during 2011, 2012, 2013, and 2014, respectively The market price per common share was $7 25 and $8 00 per share at the end of years 2013 and 2014, respectively 1 Determine the dividends per share and the total dividends paid to common stockholders and preferred stockholders in 2011, 2012, 2013, and 2014 If required, round your answers to the nearest cent If an amount is zero, enter 0 Cumulative Preferred Stock Dividends Per Share Common Stock Dividends Per Share Total Dividends Allocated 2011 $ $ $ 2012 $ $ $ 2013 $ $ $ 2014 $ $ $ 2 Perform the same computations, with the assumption that the preferred stock was noncumulative If required, round your answers to the nearest cent If an amount is zero, enter 0 Noncumulative Preferred Stock Dividends Per Share Common Stock Dividends Per Share Total Dividends Allocated 2011 $ $ $ 2012 $ $ $ 2013 $ $ $ 2014 $ $ $ 3 Calculate the 2013 and 2014 dividend yield for common stock, using the dividends per share computed in requirement 2 Round your answers to one decimal place Dividend Yield 2013 2014

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1. Listed below are common terms associated with bonds: Bond certificate Bond issue Bond indenture Unsecured bonds Debenture bonds Secured bonds Term bonds Serial bonds

Listed below are common terms associated with bonds:

Bond certificate
Bond issue
Bond indenture
Unsecured bonds
Debenture bonds
Secured bonds
Term bonds
Serial bonds
Registered bonds
Coupon bonds
Callable bonds
Convertible bonds
Face interest rate
Market interest rate
Effective interest rate
Bond premium
Bond discount

1. For each of the following statements, identify the term with which it is associated. (If two statements apply, choose the category with which it is most closely associated.)

1.	Occurs when bonds are sold at more than face value	SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 1
2.	Rate of interest that will vary depending on economic conditions	SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 2
3.	Bonds that may be exchanged for common stock	SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 3
4.	Bonds that are not registered	SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 4
5.	A bond issue in which all bonds are due on the same date	SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 5
6.	Occurs when bonds are sold at less than face value	SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 6
7.	Rate of interest that will be paid regardless of market conditions	SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 7
8.	Bonds that may be retired at management's option	SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 8
9.	A document that is evidence of a company's debt	SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 9
10.	Same as market rate of interest	SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 10
11.	Bonds for which the company knows who owns them	SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 11
12.	A bond issue for which bonds are due at different dates	SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 12
13.	The total value of bonds issued at one time	SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 13
14.	Bonds whose payment involves a pledge of certain assets	SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 14
15.	Same as debenture bonds	SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 15
16.	Contains the terms of the bond issue	SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 16
17.	Bonds issued on the general credit of the company	SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 17

2. Preferred andCommon StockDividendsand Dividend Yield

Avaya Corporation had the following stock outstanding from 2011 through 2014:

Preferred stock:$100par value, 8 percent cumulative, 5,000 shares authorized, issued, and outstanding

Common stock:$10 par value, 100,000 shares authorized, issued, and outstanding

The company paid $30,000, $30,000, $94,000, and $130,000 in dividends during 2011, 2012, 2013, and 2014, respectively. The market price per common share was $7.25 and $8.00 per share at the end of years 2013 and 2014, respectively.

1. Determine the dividends per share and the total dividends paid to common stockholders and preferred stockholders in 2011, 2012, 2013, and 2014. If required, round your answers to the nearest cent. If an amount is zero, enter "0".

	Cumulative Preferred Stock Dividends Per Share	Common Stock Dividends Per Share	Total Dividends Allocated
2011	$	$	$
2012	$	$	$
2013	$	$	$
2014	$	$	$

2. Perform the same computations, with the assumption that the preferred stock was noncumulative. If required, round your answers to the nearest cent. If an amount is zero, enter "0".

	Noncumulative Preferred Stock Dividends Per Share	Common Stock Dividends Per Share	Total Dividends Allocated
2011	$	$	$
2012	$	$	$
2013	$	$	$
2014	$	$	$

3. Calculate the 2013 and 2014 dividend yield for common stock, using the dividends per share computed in requirement 2. Round your answers to one decimal place.