Match each of the following terms with the appropriate definitions.(a) Term bonds(b) Coupon bonds(c) Market rate(d) Bond indenture(e) Convertible bonds(f) Bearer bonds(g) Installment note(h) Unsecured bonds(i) Serial bonds(j) Effective interest rate method________ (1) A liability requiring a series of periodic payments to the lender.________ (2) Bonds that are payable to whoever holds them; also called unregistered bonds.________ (3) Bonds that are backed by the issuer's general credit standing.________ (4) Bonds that are scheduled for maturity on one specified date.________ (5) The contract between the bond issuer and the bondholders; it identifies the rights and obligations of the parties.________ (6) An accounting method that allocates interest expense over the bonds'
life in a way that yields a constant rate of interest.________ (7) Bonds with interest coupons attached to their certificates; the bondholders detach the coupons when they mature and present them to a bank or broker for collection.________ (8) The interest rate that borrowers are willing to pay and lenders are willing to accept for a particular bond at its risk level.________ (9) Bonds that can be exchanged by the bondholders for a fixed number of shares of the issuing corporation's common stock.________ (10)Bonds that mature at more than one date and are usually paid over a number of periods.
What will be an ideal response?
1. G; 2. F; 3. H; 4. A; 5. D; 6. J; 7. B; 8. C; 9. E; 10. I
You might also like to view...
Briefly discuss what gross profit represents and how it affects the net earnings of a merchandiser.
What will be an ideal response?
Channel conflict can be minimized through intensive distribution and/or horizontal integration
Indicate whether the statement is true or false
________ are courts that hear cases of a general nature that are not within the jurisdiction of limited-jurisdiction trial courts
A) Courts of record B) Intermediate appellate courts C) Inferior trial courts D) State supreme courts
Assume Lavender Corporation has a market value of $4 billion of equity and a market value of $19.8 billion of debt. What are the weights in equity and debt that are used for calculating the WACC?
A) 0.10, 0.90 B) 0.832, 0.168 C) 0.168, 0.832 D) 0.90, 0.10