Below on the left is a list of bond classifications and terms. Match each item in the
Question:
Below on the left is a list of bond classifications and terms. Match each item in the list with the statement on the right by selecting the appropriate statement from the dropdown list.
Convertible Bonds
[ Choose ] The interest rate that is used to calculate the amount of interest to be paid each interest period
The investor has the option of turning in the bond for retirement before maturity date
The principal is paid off in steps (installments).
The entire bond issue matures at a single date
Unsecured bonds
Interest is paid only to owners of record as reflected in the accounts of the issuer
The interest rate that is used to calculate the amount of interest expense each interest period
An alternative name for this type of bond is bearer bond
Bonds that may be turned in to the issuer in exchange for other securities
Interest is paid only in years when the issuer earns a profit
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus