Chapter 10-Bond Vocabulary -Match each of the following terms with appropriate definitions:A. Bond IndentureB. Effective Interest MethodC. Secured BondD. Sinking Fund BondE. Registered BondF. Market RateG. Bearer BondH. Convertible BondI. DebentureJ. Serial Bondlo sgs1. Records and tracks the bondholders' namesor zabing2. Is unsecured; backed only by the issuer's credit standing3. Has varying maturity dates for amounts owed.4. The interest rate that borrowers are willing to pay and that lenders are willing toaccept for a particular bond based on its risk5. Identifies rights and responsibilities of the issuer and the bondholders6. Can be exchanged for shares of the issuer's stock7. Is unregistered; interest is paid to whoever possesses them8. An accounting method that allocates interest expense over the bonds' life in away that yields a constant rate of interest9. Maintains a separate asset account from which bondholders are paid at maturity10. Pledges specific assets of the issuer as collateral

A bond is a type of loan where an investor lends money to a borrower, typically a corporation or…

Answered: Chapter 10- Bond Vocabulary - Match…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Categorize each of the nine different sources of risk according to the investment class to which it applies. If the risk applies to both stocks and bonds then categorize it as "both." Question content area bottom Part 1 Interest rate risk applies to: A. stocks only. B. bonds only. C. both stocks and bonds.
III. Discuss why the effective interest method to amortize bonds premiums or discounts is preferable to straight line method. Present your views in maximum 200 words. D Focus
The journal entry a company makes for the issuance of bonds when the contract rate is less than the market rate would be Oa. debit Cash and Discount on Bonds Payable, credit Bonds Payable Ob. debit Cash, credit Bonds Payable Oc. debit Cash, credit Premium on Bonds Payable and Bonds Payable Od. debit Bonds Payable, credit Cash
23. The bond issue price is determined by calculating the a.future value of the stream of interest payments and the future value of the maturity amount. b.present value of the stream of interest payments and the present value of the maturity amount. c.future value of the stream of interest payments and the present value of the maturity amount. d.present value of the stream of interest payments and the future value of the maturity amount.
For a standard U.S. Treasury bond, when are the following characteristics of the bond determined? The amounts of any interest payments. The dates of any interest payments. The bond's market yield. The bond's market price. The amount that the Treasury returns to the bondholder, when the bond matures. The price that the bondholder pays to the Treasury to acquire the bond. The maturity date. 1. 2. Fixed before the bonds are sold and does not change. Fixed when the bonds are sold and does not change. 3. Fluctuates continually.
From page 9-3 of the VLN, when determining the issue price of a bond, which interest rate would you use? Group of answer choices A. Stated rate B. Market rate C. Nominal rate D. Compound rate
Question Content Area The journal entry a company makes for the issuance of bonds when the contract rate is less than the market rate would be a. debit Cash, credit Premium on Bonds Payable and Bonds Payable b. debit Cash, credit Bonds Payable c. debit Cash and Discount on Bonds Payable, credit Bonds Payable d. debit Bonds Payable, credit Cash
Which of the following is considered the principal when figuring interest for a bond? Group of answer choices face of the bond effective interest rate life of bond none of these
12. The rate of interest actually earned by bondholders is called the a. stated rate. b. coupon rate. c. bond rate. d. effective rate.
Given the information below, which bond(s) will be issued at a premium? Bond 1 Bond 2 Bond 3 Bond 4 Stated Rate of Return 5% 10 % 15% 12% Market Rate of Return 5% 8% 12% 14% Bond 1. Bond 2. Bond 4. Bonds 2 and 3.
A bond is currently selling for $980. This is a _____ bond which will ultimately experience a capital _____. Premium; gain Premium; loss Discount; gain Discount; loss
Question 47: Match each financial function to its best description. PMT PV Table FV Calculates the value of a bond at a later date Calculates the required payment for a bond Calculates the current value of a bond

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