BondsPayable

1. Definethefollowingterms:
   • Bondindenture(andwhatisincludedasthetermsofabondontheindenture)

• Bond covenant/restriction

• Securedbonds(vs.unsecuredbonds)

• Term bonds

• Serialbonds

• Callablebond

• Convertiblebond

• Registeredbond

• Bearerbond

• Facevalue/parvalue/principal/maturityvalue ofa bond

• Stated/coupon/nominal rate

• Effectiveyield/marketrate

1. Choosethecorrectanswers inthebrackets below:
   • Abondisissued at parvalueifthesalepriceofthebond is

[equalto/greater than/lessthan]thefacevalueofthebond.

• Thishappensbecausethe couponrateofthebondis

[equalto/greater than/lessthan]themarketrateforthe bond.

• Abondisissuedatadiscount ifthesalepriceofthebondis

[equalto/greater than/lessthan]thefacevalueofthebond.

• Thishappensbecausethe couponrateofthebondis

[equalto/greater than/lessthan]themarketrateforthe bond.

• A bond is issued at a premiumif the sale price of the bond is [equalto/greater than/lessthan]thefacevalueofthebond.
  • Thishappensbecausethe couponrateofthebondis

[equalto/greater than/lessthan]themarketrateforthe bond.

ExtinguishmentofDebt

1. Whatdoesitmeanifabondisissued orcalledat95?100?105?