Bond issue costs Callable bond Convertible bond Secured bond Serial bond Sinking
ID: 2469265 • Letter: B
Question
Bond issue costs
Callable bond
Convertible bond
Secured bond
Serial bond
Sinking fund
Term bond
Unsecured bond
Definitions Terms a. Allows the issuer to pay off the bonds early at a fixed price. b. Matures in installments. c. Secured only by the “full faith and credit” of the issuing corporation. d. Allows the investor to transfer each bond into shares of common stock. e. Money set aside to pay debts as they come due. f. Matures on a single date. g. Supported by specific assets pledged as collateral by the issuer. h. Includes underwriting, legal, accounting, registration, and printing fees.Bond issue costs
Callable bond
Convertible bond
Secured bond
Serial bond
Sinking fund
Term bond
Unsecured bond
Explanation / Answer
Definitions
Terms
a.
Allows the issuer to pay off the bonds early at a fixed price.
Callable bond
b.
Matures in installments.
Serial bond
c.
Secured only by the “full faith and credit” of the issuing corporation.
Unsecured bond
d.
Allows the investor to transfer each bond into shares of common stock.
Convertible bond
e.
Money set aside to pay debts as they come due.
Sinking fund
f.
Matures on a single date.
Term bond
g.
Supported by specific assets pledged as collateral by the issuer.
Secured bond
h.
Includes underwriting, legal, accounting, registration, and printing fees.
Bond issue costs
Definitions
Terms
a.
Allows the issuer to pay off the bonds early at a fixed price.
Callable bond
b.
Matures in installments.
Serial bond
c.
Secured only by the “full faith and credit” of the issuing corporation.
Unsecured bond
d.
Allows the investor to transfer each bond into shares of common stock.
Convertible bond
e.
Money set aside to pay debts as they come due.
Sinking fund
f.
Matures on a single date.
Term bond
g.
Supported by specific assets pledged as collateral by the issuer.
Secured bond
h.
Includes underwriting, legal, accounting, registration, and printing fees.
Bond issue costs