Question

Following are definitions or descriptions of terms relating to corporate bonds.
(1) The legal contract between a bond purchaser and the issuing company.
(2) A bond backed only by the legal commitment of the issuing company to make all required principal and interest payments.
(3) The repayment point for the bond principal.
(4) A bond collateralized by specific assets of the issuing company.
(5) A bond that may be exchanged for stock in the issuing company.
(6) The typical amount for corporate bonds is $1,000.
(7) The period between the date bonds are first available for sale and the date they must be paid.
(8) A long-term loan made by one party to another.
(9) The rate of interest to be paid to bondholders based on the bonds’ legal agreement.
(10) A bond that can be retired at the company’s option
Required:
Match each definition or description listed with the appropriate term from the following list.
(a) Bond
(b) Face value
(c) Maturity date
(d) Bond indenture
(e) Stated interest rate
(f) Bond term
(g) Callable bond
(h) Secured bond
(i) Convertible bond
(j) Debenture


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  • CreatedMarch 27, 2015
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