trienw exisisenwine: The Eompary and its subsidiaries are involyted frum itme 10 time it staims, ptoceedings, and litipio Company's financial jowition or restils of its vperations. Instructions 4. Explain wtoy the company does not have to record these conttnpeneties. b. Corrmeot an aty impilcatines for abalysis of the fmancial stasements. F1e 24 (LO 1, 2 3,4],4. The following are tetms of phrases that were intrixduced in the chapter. Idennty koy serma. 1. Bond certifieate. 9. Cantingeracies: 2. Preenium (on a bond). 10. Securod thonds. 3. biscount (on a bond). 11. Consractual (stated) inietest rate. 4. Tients interest eatned 12. Unsecurred bands. 5. Prevent value 13. OG-balance-sheet financink 6. Maturity date. 14. Face value. 7. Callable honds. 15. Convertible bonds 8. Market interest rate. Instructions Match the term or phrase with the appropriate description below. an. The value-today of an amount to be received at some tate in the future affer takiog intio Hecount curfent interest rates. b. Bonds that have specific assets of the issuer pledged as collakeral. E. Events with uncertain outcomes that may rypresent gotential liabitities d. Bonds that can be comverted into common stock at the boridholder's option. E.. A legal document that indicates the name of the issper, the fioe vilue of the bonds, and OCther data sitch as the contractual interent rate and the maturity date of the bonds. f. Bonds that the issuing company can redeem (buy back) at a stated dollar amount prior wo maturity. g. The date on which the final payment on a bond is due from the bond issuer to the investor: h. Rate used to determine the amount of interest the issuer pays and the investor recelves: i. The difference between the face value of a bond und its selling price when a bond is sold. for less than its face value. j. A measure of a company's solvency, calculated by dividing the sum of net income, interest expense, and income tax expense by interest expenseThe rate invectors demund for loaning funds to the corporation. 1. Amount of principal duc at the maturity date of the bond. Bonds issued aguinst the general credit of the borrower. n. The intentional effort by a company to structure its financing arrangements so as to avoid showing liabilities on its balance sheet o. The difference berween the selling price and the face value of a bond when a bond is sold for more than its face vilue