Question: Match each term with the correct definition. a. Contingency b. Discount c. Premium d. Capital lease e. Stated rate f. Effective rate 1. Another name

Match each term with the correct definition.

a.

Contingency

b.

Discount

c.

Premium

d.

Capital lease

e.

Stated rate

f.

Effective rate

1. Another name for thereal rate

2. The annual interest ratepaid to the bondholders

3. A lease that is for mostof the useful life of the lease resource and which gives the firmcontrol of the resource as if it had been purchased.

4. An existing conditionthat may result in an economic effect if a future event occurs

5. When the real rate ishigher than the stated rate, bonds will sell at this

6. When the real rate islower than the stated rate, bonds will sell at this

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