Match the items below by entering the appropriate code letter in the space provided. A. Term bonds B. Debenture bonds C. Financial Leverage D. Premium on bonds payable E. Discount on

Match the items below by entering the appropriate code letter in the space provided.
A. Term bonds
B. Debenture bonds
C. Financial Leverage
D. Premium on bonds payable
E. Discount on bonds payable
F. Effective-interest method of amortization
G. Blended Payments
H. Bonds
I. Contractual rate
J. Finance lease
K. Redeemable bonds
L. Interest Coverage
____ 1. Borrowing at one rate and investing at a different rate.
____ 2. Bonds that mature at a single specified future date
____ 3. Bonds that can be retired by the company before they mature
____ 4. A debt security that is traded on organized exchanges
____ 5. Occurs when the contractual rate of interest is greater than the market rate of interest.
____ 6. Unsecured bonds issued against the general credit of the borrower
____ 7. Used to determine the amount of interest the borrower pays and the investor receives.
____ 8 Occurs when the contractual rate of interest is less than the market rate of interest.
____ 9. Fixed debt payments resulting in an increasingly larger portion of each payment being credited toward principal and a smaller portion toward interest over time.
____ 10. A contractual arrangement that transfers the risks and rewards of ownership to the lessee.
____ 11. Produces a periodic interest expense equal to a constant percentage of the amortized cost of the bonds.
_____ 12. Indicates the company’s ability to meet interest payments as they come due.

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