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Matching- All letters are not used a. A) Bond issue costs b. B) Yield to maturit

ID: 2503788 • Letter: M

Question

Matching- All letters are not used

a.       A) Bond issue costs

b.      B) Yield to maturity

c.       C) Bond indenture

d.      D)Discount on bonds

e.      E)Callable bonds

f.        F)Serial bonds

g.      G) Premium on bonds

h.      H)Stock on bonds

i.         I)Junk bonds

j.        J)Convertible bonds

k.       K)Loss on extinguishment

l.         L)Zero coupon bonds

m.    M)Mortgage bond

n.      N)Call feature

o.      O)Interest expense


1.       1)The rate of return promised bond investors

2.       2)Instead of establishing a sinking fund, a portion of the issue is retired each year

3.       3)Conceptually equal to effective rate times balance

4.       4)Expenses incurred by the issuer for legal services, printing, engraving and engraving, taxes and underwriting in connection with the sale of a bond

5.       5)Promises made to bond holders

6.       6)At the option of the holder these bonds can be exchanged for equity securities

7.       7)Protects the debt issuer if rate fall

8.       8)High risk bonds issued by companies in a weak financial condition

9.       9)This bond is sold at a deep discount and is often referred by the internal revenue service as an OID

10.   10)Market rate less than stated rate

11. 1 11)Right of an investor to purchase specific shares at a fixed price

12.   12)The amount by which the reacquisition price of debt exceeds carrying value

13)Secured by real property

Explanation / Answer

A - 4

B - 1

C - 11

D - 3

E - 7

F - 2

G - 10

H -

I - 8

J - 6

K - 12

L - 9

M - 13

N - 5

O -