Match each of the following terms with the appropriate definitions a Bond b

Question

Match each of the following terms with the appropriate definitions.

(a) Bond
(b) Callable bonds
(c) Annuity
(d) Contract rate
(e) Sinking fund bonds
(f) Secured bonds
(g) Carrying value
(h) Premium on bonds
(i) Bond indenture
(j) Debt-to-equity ratio

__________ (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 create a fund of assets at specified amounts

and dates to repay the bonds at maturity.

__________ (8) The net amount at which bonds are reported on the balance sheet.

__________ (9) The ratio of total liabilities to total stockholders equity.

__________ (10) A written promise to pay an amount identified as the par value along with

interest at a stated rate.

Answer

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