Mt f e oogh j wish the appropriste definitions thrgh 10 (C) Market rae (D) Convertible bonds (E) Bearer bonds (F) Term bonds (G) Unsecured bonds (H) Serial bonds Effective intcrest rate method ) An obligation requiring a series of periodic payments to the lender 2) Bonds that are made payable to whoever holds them, also called unregistered bonds 3) Bonds that are backed by the issuer's credit standing (4) Bonds that are scheduled for payment os one specified date (5) Accounting method that allocates interest expense over the bond life that yields 6) Bonds with interest couposs atached so their certificates; the bondholders detach the coupons when they a constant rate of interest mature and present them to a bank or broker for collection Ronda that can be exchanged for a fixed mamber shares of the issuing corporation's common stock mature at more than one date and are usualy paid over a number of periods laterest rate that borowers will pay and that lenders will accept for a particular bond at its risk level 3) B Learning Objective: Ch11-C M elae into exisnence, incading legal fees and amounts paid to obtain a chanter are called: B) Stock subscriptions C) Organiracion costs D) Cumulative costs E) Prepaid fees. Learning Objestivs: Ch11-CI 35. Buying stock in a corporation is atractive to investors becaase A) Stockholders are not liable for the corporation's actions and debes Stock is casily transferred C) A corporation has unlimited life D) B) Shareholders are not agents of the corporation. E) All of the above. Learning Ofiestive A proxy is: A) Ch11-ci 36. A legal document that gives a designated agent of a stockholder the power to vote the stock B) A costractwal commitment by an investor to purchase unissued shares of stock C) An amount of assets defined by state law that stockholders mast invest and leave invested in a corporation D) The right of common stockholders to protect their proportionate interests in a corporation by having the first opportunity to purchase additional shares of common stock issued by the corporation E) An arbitrary amount assigned to no-par stock by the corporation's board of directors Leaming Objective: ChI1-CI 37. The board of directors of a corporation: A) Are elected by the corporate registrar B) Are responsible for day-to-day operations of the business C) Do not have the power to bind the corporation to contracts, due to lack of mutual agency D) May not also be executive officers of the corporation, due to the separate entity principle. E) Are responsible for and have final authority for managing corporate activities Learming Objective: Chl1-C2 38. Par value of a stock refers to the: A) Issue price of the stock B) Value assigned to a share of stock by the corporate charter C) Market value of the stock on the date of the financial statements D) Maximum selling price of the stock E) Dividend value of the stock 12 E) All of the above. 10