Question
Match each of the definitions in #1-6 with the correct term as they relate to debt: (a) Indenture; (b) Debenture; (c) Face Value; (d) Protective
Match each of the definitions in #1-6 with the correct term as they relate to debt:
(a) Indenture; (b) Debenture; (c) Face Value; (d) Protective Covenant; (e) Note; (f) Call Provision; (g) Interest Rate Risk; (h) Sinking Fund.
1. The principal amount of a bond that is repaid at the end of the term:
2. An unsecured debt, usually with a maturity under 10 years:
3. The risk that arises from bond owners from fluctuating market interest rates:
4. Funds managed by a trustee to be used for early bond redemption:
5. The written agreement on debt terms between a corporation and the lender:
6. Part of the agreement limiting certain actions a company might wish to make during the term of the loan:
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