Question
Below on the left is a list of bond classifications and terms. Match each item in the list with the statement on the right by
Below on the left is a list of bond classifications and terms. Match each item in the list with the statement on the right by selecting the appropriate statement from the dropdown list.
Convertible Bonds
[ Choose ] The interest rate that is used to calculate the amount of interest to be paid each interest period The investor has the option of turning in the bond for retirement before maturity date The principal is paid off in steps (installments). The entire bond issue matures at a single date Unsecured bonds Interest is paid only to owners of record as reflected in the accounts of the issuer The interest rate that is used to calculate the amount of interest expense each interest period An alternative name for this type of bond is bearer bond Bonds that may be turned in to the issuer in exchange for other securities Interest is paid only in years when the issuer earns a profit
Coupon Bonds
[ Choose ] The interest rate that is used to calculate the amount of interest to be paid each interest period The investor has the option of turning in the bond for retirement before maturity date The principal is paid off in steps (installments). The entire bond issue matures at a single date Unsecured bonds Interest is paid only to owners of record as reflected in the accounts of the issuer The interest rate that is used to calculate the amount of interest expense each interest period An alternative name for this type of bond is bearer bond Bonds that may be turned in to the issuer in exchange for other securities Interest is paid only in years when the issuer earns a profit
Debentures
[ Choose ] The interest rate that is used to calculate the amount of interest to be paid each interest period The investor has the option of turning in the bond for retirement before maturity date The principal is paid off in steps (installments). The entire bond issue matures at a single date Unsecured bonds Interest is paid only to owners of record as reflected in the accounts of the issuer The interest rate that is used to calculate the amount of interest expense each interest period An alternative name for this type of bond is bearer bond Bonds that may be turned in to the issuer in exchange for other securities Interest is paid only in years when the issuer earns a profit
Effective interest rate
[ Choose ] The interest rate that is used to calculate the amount of interest to be paid each interest period The investor has the option of turning in the bond for retirement before maturity date The principal is paid off in steps (installments). The entire bond issue matures at a single date Unsecured bonds Interest is paid only to owners of record as reflected in the accounts of the issuer The interest rate that is used to calculate the amount of interest expense each interest period An alternative name for this type of bond is bearer bond Bonds that may be turned in to the issuer in exchange for other securities Interest is paid only in years when the issuer earns a profit
Income Bonds
[ Choose ] The interest rate that is used to calculate the amount of interest to be paid each interest period The investor has the option of turning in the bond for retirement before maturity date The principal is paid off in steps (installments). The entire bond issue matures at a single date Unsecured bonds Interest is paid only to owners of record as reflected in the accounts of the issuer The interest rate that is used to calculate the amount of interest expense each interest period An alternative name for this type of bond is bearer bond Bonds that may be turned in to the issuer in exchange for other securities Interest is paid only in years when the issuer earns a profit
Nominal interest rate
[ Choose ] The interest rate that is used to calculate the amount of interest to be paid each interest period The investor has the option of turning in the bond for retirement before maturity date The principal is paid off in steps (installments). The entire bond issue matures at a single date Unsecured bonds Interest is paid only to owners of record as reflected in the accounts of the issuer The interest rate that is used to calculate the amount of interest expense each interest period An alternative name for this type of bond is bearer bond Bonds that may be turned in to the issuer in exchange for other securities Interest is paid only in years when the issuer earns a profit
Redeemable Bonds
[ Choose ] The interest rate that is used to calculate the amount of interest to be paid each interest period The investor has the option of turning in the bond for retirement before maturity date The principal is paid off in steps (installments). The entire bond issue matures at a single date Unsecured bonds Interest is paid only to owners of record as reflected in the accounts of the issuer The interest rate that is used to calculate the amount of interest expense each interest period An alternative name for this type of bond is bearer bond Bonds that may be turned in to the issuer in exchange for other securities Interest is paid only in years when the issuer earns a profit
Registered Bonds
[ Choose ] The interest rate that is used to calculate the amount of interest to be paid each interest period The investor has the option of turning in the bond for retirement before maturity date The principal is paid off in steps (installments). The entire bond issue matures at a single date Unsecured bonds Interest is paid only to owners of record as reflected in the accounts of the issuer The interest rate that is used to calculate the amount of interest expense each interest period An alternative name for this type of bond is bearer bond Bonds that may be turned in to the issuer in exchange for other securities Interest is paid only in years when the issuer earns a profit
Serial Bonds
[ Choose ] The interest rate that is used to calculate the amount of interest to be paid each interest period The investor has the option of turning in the bond for retirement before maturity date The principal is paid off in steps (installments). The entire bond issue matures at a single date Unsecured bonds Interest is paid only to owners of record as reflected in the accounts of the issuer The interest rate that is used to calculate the amount of interest expense each interest period An alternative name for this type of bond is bearer bond Bonds that may be turned in to the issuer in exchange for other securities Interest is paid only in years when the issuer earns a profit
Term Bonds
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