Terms related to long-term debt

Place the letter of the best matching phrase before each term.

1. Debenture 6. Debt to total assets ratio

2. Bearer bonds 7. Term bonds

3. Income bonds 8. Leverage

4. Carrying value 9. Callable bonds

5. Stated rate 10. Market rate

a) Bonds that mature on a single date.

b) Rate set by party issuing the bonds which appears on the bond indenture.

c) Bonds that pay no interest unless the issuer is profitable.

d) Rate of interest actually earned by the bondholders.

e) Results when bonds are sold below par.

f) The practice of using other peoples money to maximize returns to shareholders.

g) Bonds not recorded in the holders name; can be easily transferred from one party to another.

h) Give the issuer the right to call in and retire bonds before maturity.

i) Maturity value of bonds less any discount or plus any premium at any given date.

j) Ratio of current assets to current liabilities.

k) Unsecured debt instruments not backed by collateral.

l) Measures the percentage of total assets provided by creditors.

m) Indicates the companys ability to meet interest payments as they come due.