Match the following terms with the correct definition. ............ 1. Bonds that all mature at the same

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Match the following terms with the correct definition.
............ 1. Bonds that all mature at the same time.
............ 2. Interest rate investors are willing to pay for similar bonds of equal risk.
............ 3. Unsecured bonds backed only by the good faith of the borrower.
............ 4. Amount of a bond’s issue price over its maturity value.
............ 5. Bonds that may be converted into the common shares of the issuing company at the option of the investor.
............ 6. Amount of a bond’s maturity value over its issue price.
............ 7. Interest rate that determines the amount of cash interest the borrower pays and the investor receive.
............ 8. Bonds in the same bond issuances that mature at different times.
............ 9. Bonds that the issuer may call or pay off at a specified price whenever the issuer wants.
a. Convertible bonds
b. Premium on bond
c. Callable bonds
d. Debentures
e. Term bonds
f. Serial bonds
g. Discount on bond
h. Stated interest rate
i. Market interest rate
Debentures
Debenture DefinitionDebentures are corporate loan instruments secured against the promise by the issuer to pay interest and principal. The holder of the debenture is promised to be paid a periodic interest and principal at the term. Companies who...
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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Financial Accounting

ISBN: 978-0132889711

1st Canadian Edition

Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper

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