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18. Bond Terms LO3 The following is a list of terms and definitions associated with liabilities 1. Face value 2. Market a. Amount paid when

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18. Bond Terms LO3 The following is a list of terms and definitions associated with liabilities 1. Face value 2. Market a. Amount paid when a bond matures. b. Rate of return investors who are interest rate buying similar bonds demand for their investments. 3. Stated interest rate c. Rate used to determine the amount of interest the issuing company of a bond must pay to the investor. 4. Sold at a 5. Maturity 6. Bond 7. Amortization 8. Sold at a discount date certificate schedule d. The date on which the face value of the bond must be paid to the investor. e. Document that contains the terms of the bond. f. This occurs when the stated rate of a bond is less than the market rate. premium g. A schedule that illustrates the amortization of a bond discount or premium over time. h. This occurs when the stated rate of a bond is greater than the market rate. Required Match each term with the appropriate definition

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