4. Fill in the blanks by using the appropriate term from the following list: higher, lower, increase, decrease, lease, funded, floating-rate, Eurobond, convertible, subordinated, call, sinking fund, prime rate, private placement, public issue, senior, unfunded, Eurodollar rate, warrant, debenture, term loan.

   1. Debt maturing in more than one year is often called________________________

   2. The issue of bonds that is sold simultaneously in several countries is a(an) ________________________

   3. If a lender ranks behind the firms general creditors in the event of a default, the loan is said to be________________________

   4. In many cases a firm is obliged to make regular contribution to a(n) ________________________, which is then used to repurchase bonds.

   5. Most bonds give the firm the right to repurchase or_______________________ the bonds at specified prices.

   6. The benchmark interest rate that the banks charge to their customers with good to excellent credit is generally termed the ________________________.

   7. The interest rate on bank loans is often tied to short-term interest rates. The loans are usually called________________________ loans.

   8. Where there is a(n) ________________________, securities are sold directly to a small group of institutional investors. These securities can not be sold to individual investors, In the case of a(n) ________________________, the debt can be freely bought aand sold by individual investors.

   9. A long-term rental agreement is called a(n) ________________________.

   10. A(n) ________________________ bond can be exchanged for shares of the issuing corporations. Such a bond is likely to have a(n) ________________________ coupon rate than a standard coupon bond.

   11. A(n) ________________________ gives its owner the right to buy shares of the issuing company.

   12. A restriction on further borrowing by a bond issuing company may ________________________ the investors required return on such a bond.