Question
Match each of the following terms a through j with the appropriate definitions 1 through 10: Bond Callable bonds Annuity Contract rate Sinking fund bonds
- Match each of the following terms a through j with the appropriate definitions 1 through 10:
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1. | _____ | Bonds that have specific assets of the issuer pledged as collateral. |
2. | _____ | A series of equal payments at equal intervals. |
3. | _____ | The difference between the par value of a bond and its higher issue price or carrying value. |
4. | _____ | Bonds that give the issuer an option of retiring them at a stated amount prior to maturity. |
5. | _____ | The interest rate specified in the bond indenture. |
6. | _____ | The contract between the bond issuer and the bondholder(s); it identifies the rights and obligations of the parties. |
7. | _____ | Bonds that require the issuer to make deposits to a separate account; the bondholders are repaid at maturity from this account. |
8. | _____ | The net amount at which bonds are reported on the balance sheet. |
9. | _____ | The ratio of the book value of a company's pledged assets to the book value of its secured liabilities. |
10. | _____ | A written promise to pay an amount identified as the par value of the bond along with interest at a stated rate. |
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