The following is a list of terms and definitions associated with liabilities:
1. Face value
2. Market interest rate
3. Stated interest rate
4. Sold at a discount
5. Maturity date
6. Bond certificate
7. Amortization schedule
8. Sold at a premium
a. Amount paid when a bond matures.
b. Rate of return investors who are buying similar bonds demand for their investments.
c. Rate used to determine the amount of interest the issuing company of a bond must pay to the investor.
d. The date on which the face value of the bond must be paid to the investor.
e. Document that contains the terms of the bond.
f. This occurs when the stated rate of a bond is less than the market rate.
g. A schedule that illustrates the amortization of a bond discount or premium over time.
h. This occurs when the stated rate of a bond is greater than the market rate.
Match each term with the appropriate definition.

  • CreatedJuly 16, 2015
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