Question 1. Match each term with the appropriate definition. Not all definitions will be used. Term: Convertible Carrying value Discount Callable Maturity Market interest rate Stated interest rate Premium Definition: A) When a bond is issued for a price greater than its face value B) Also known as the face value or par value of a bond C) Rate of interest that investors demand from a bond D) A bond with the feature that allows creditors to exchange the bond for company stock E) The amount a company receives when it sells a bond; also known as issue price. F) The interest rate printed on the bond certificate G) The time at which the face value of a bond must be paid to the lender H) Is multiplied by the market interest rate to calculate the (effective) interest expense on a bond 1) A bond feature that changes the interest rate on the bond with market conditions J) When a bond is issued for a price less than its face value K) A bond with the feature that allows the borrowing company to pay off a bond whenever it wishes L) A bond with the feature that lets creditors examine financial data and demand new loan conditions