Match the type of bond with the appropriate description. Type of Bond A. Convert
ID: 2469859 • Letter: M
Question
Match the type of bond with the appropriate description. Type of Bond A. Convertible bonds B. Premium on bonds C. Callable bonds D. Debentures E. Term bonds F. Serial bonds G. Discount on bond H. Stated Interest Rate I. Market Interest Rate J. School bonds Description 1. Bonds that all nature at the same time. 2. Interest rate investors are willing to pay for similar bonds of equal risk. 3. Unsecured bonds backed only by the good faith of the borrower. 4. Amount of a bond's issue price over its maturity value. 5. Bonds that may be converted into the common stock of the issuing company at the option of the investor. 6. Amount of a bond's maturity value over its issue price. 7. Interest rate that determines the amount of cash interest the borrower pays and the investor receives. 8. Bonds in the same issuance that mature at different times. 9. Bonds that the issuer may call or pay off at a specified price whenever the issuer wants. 10. Bonds issued by a city, town or school district for the purpose of school construction.Explanation / Answer
1. Term bonds
2. Market interest rate
3. Debentures
4. Premium on bonds
5. Convertible Bonds
6. Discount on bond
7. Stated interest rate
8. Serial bonds
9. Callable bonds
10. School Bonds