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Chapter 10 Bond Vocabulary - Match each of the following terms with appropriate definitions: A. Bond Indenture B. Effective Interest Method C. Secured Bond D.

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Chapter 10 Bond Vocabulary - Match each of the following terms with appropriate definitions: A. Bond Indenture B. Effective Interest Method C. Secured Bond D. Sinking Fund Bond E. Registered Bond F. Market Rate G. Bearer Bond H. Convertible Bond 1. Debenture J. Serial Bond 1. Records and tracks the bondholders' names 2. Is unsecured; backed only by the issuer's credit standing 3. Has varying maturity dates for amounts owed. 4. The interest rate that borrowers are willing to pay and that lenders are willing to accept for a particular bond based on its risk 5. Identifies rights and responsibilities of the issuer and the bondholders 6. Can be exchanged for shares of the issuer's stock 7. Is unregistered; interest is paid to whoever possesses them 8. An accounting method that allocates interest expense over the bonds' life in a way that yields a constant rate of interest 9. Maintains a separate asset account from which bondholders are paid at maturity 10. Pledges specific assets of the issuer as collateral

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