Listed below are several terms and phrases associated with long-term debt. Pair each item from List A
Question:
List A List B 1. Effective rate times balance 2. Promises made to bondholders 3. Present value of interest plus present a. Straight-line method b. Discount c. Liquidation payments after other value of principal 4. Call feature claims satisfied d. Name of owner not registered e. Premium f. Checks are mailed directly g. No specific assets pledged h. Bond indenture i. Backed by a lien j. Interest expense k. May become stock I. Legal, accounting, printing m. Protection against falling rates n. Periodic cash payments o. Bond price 5. Debt issue costs 6. Market rate higher than stated rate 7. Coupon bonds 8. Convertible bonds 9. Market rate less than stated rate 10. Stated rate times face amount 11. Registered bonds 12. Debenture bond 13. Mortgage bond 14. Materiality concept 15. Subordinated debenture
Step by Step Answer:
List A List B j 1 Effective rate times balance a Straightline method h 2 Promises ...View the full answer
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Related Video
Bond valuation is the process of determining the worth of a bond. It is based on the present value of the bond\'s future cash flows, which include coupon payments and the return of the bond\'s face value (or \"principal\") at maturity. The discount rate used in the calculation is directly tied to prevailing interest rates, and a rise in interest rates will decrease the present value of the bond and thus lower its price. Conversely, a fall in interest rates will increase the present value of the bond and raise its price. Interest rates serve as a benchmark for determining the value of a bond, as they determine the discount rate used in the bond valuation calculation. The most commonly used measure of interest rates is the yield to maturity (YTM), which represents the internal rate of return of an investment in a bond if the investor holds the bond until maturity and receives all scheduled payments. Yield to maturity is a function of the coupon rate, the current market price of the bond, the face value of the bond, and the number of years remaining until maturity. By comparing the yield to maturity of a bond to prevailing market interest rates, an investor can assess the relative value of the bond.
Students also viewed these Cost Accounting questions
-
Listed below are several terms and phrases associated with pensions. Pair each item from List A with the item from List B (by letter) that is most appropriately associated with it. List A List B 1....
-
Listed below are several terms and phrases associated with leases. Pair each item from List A with the item from List B (by letter) that is most appropriately associated withit. List A List B --1....
-
Listed below are several terms and phrases associated with pensions. Pair each item from List A with the item from List B (by letter) that is most appropriately associated withit. List A List B 1....
-
Which of the following are valid in a Java file, listed in the order in which they are declared? (Choose two.) A. A package-private class declaration and a public interface declaration B. Two package...
-
What is point-in-time measurement? How does it differ from period-of-time measurement?
-
How do you create an investment plan for home ownership? Explain briefly
-
Explain, through an example, how methods can be derived from messages.
-
Prepare a cash flow projection for a construction company that currently has two projects under contract for the next year and anticipates picking up a third and fourth project during the year. For...
-
(a) Prove, using the definition, that L{f(at)} = F() (a #0). (b) Prove, using the definition, that L{eat f(t)} = F(s-a). (c) Prove, using the definition, that the Laplace transform of the function...
-
George Pharmacy is a pharmaceutical salesman who has been very successful at his job in the last few years. Unfortunately, his family life has not been very happy. Three years ago, his only child,...
-
On January 1, 2016, Essence Communications issued $800,000 of its 10-year, 8% bonds for $700,302. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31....
-
Refer to the financial statements and related disclosure notes of PetSmart in Appendix B located at the back of this textbook. Long-term solvency refers to a company's ability to pay its long-term...
-
Given that the pairs of triangles are similar, find the unknown length n. 1. 2. 10 12
-
A cone clutch has a cone angle of \(40^{\circ}\). The maximum pressure between contact surface is limited to \(0.3 \mathrm{~N} / \mathrm{m}^{2}\) and width of conical surface is half of the mean...
-
There are four shoes in the centrifugal clutch. The mass of each shoe is \(5 \mathrm{~kg}\). When the clutch is at rest, the force exerted by spring on shoes is \(200 \mathrm{~N}\). The clearance...
-
In a double block brake, as shown in Figure 16.8 (c), has drum radius \(=400 \mathrm{~mm}\), angle of contact \((2 \theta)=30^{\circ}\), coefficient of friction \((\mu)=0.25\), the force applied on...
-
A single block brake, as shown in Figure 16.8 (a), has brake drum diameter of \(250 \mathrm{~mm}\). It can withstand \(300 \mathrm{Nm}\) torque at \(500 \mathrm{rpm}\). The coefficient of friction...
-
In a differential band brake as shown in Figure 16.9 (a), the data are given as: radius \(=400 \mathrm{~mm}\), \(a=40 \mathrm{~mm}, b=200 \mathrm{~mm}, l=1,000 \mathrm{~mm}, \theta=\) \(270^{\circ},...
-
Verify that a surface tension s with units N/m also can be called a surface energy with units J/m 2 . The latter is useful for consideration of a liquid drop or liquid in small pores (capillary).
-
On 1 July 2018, Parent Ltd acquired all the shares of Son Ltd, on a cum-div. basis, for $2,057,000. At this date, the equity of Son Ltd consisted of: $ 1,000,000 Share capital 500 000 shares...
-
Recording and Amortization of Intangibles Power glide Company, organized in 2009, has set up a single account for all intangible assets . The following summary discloses the debit entries that have...
-
Accounting for Trade Name In early January 2009, Reymont Corporation applied for a trade name, incurring legal costs of $18,000. In January of 2010, Reymont incurred $7,800 of legal fees in a...
-
Accounting for Organization Costs Fontenot Corporation was organized in 2009 and began operations at the beginning of 2010. The company is involved in interior design consulting services. The...
-
For this assignment, submit the code (SQL script or document), including structure from the Data Definition Language (DDL) and the Data Manipulation Language (DML). Use these SQL Statements as a...
-
Data Manipulation Tasks a Insert 20 records into each table for testing purposes. a Delete an entire order by using the unique identifier for that order. o Update the price of a product by using the...
-
Data manipulation language (DML) provides a number of capabilities that allow you to build custom queries of existing data. What are two capabilities you might use to limit the data you select or...
Study smarter with the SolutionInn App