Chapter 9, Problem 9.2E

listed below are terms and definitions associated with bonds.

Terms

_____ 1. Sinking fund.

_____ 2. Secured bond.

_____ 3. Unsecured bond.

_____ 4. Term bond.

_____ 5. Serial bond.

_____ 6. Callable bond.

_____ 7. Convertible bond.

_____ 8. Bond issue costs.

Definitions

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.

Required:

Match (by letter) the bond terms with their definitions. Each letter is used only once.