Match the Terms with the Definitions

question 29

Multiple Choice

Match the terms with the definitions.
-The amount that the bank deducts from the face of a note.

• A)term of the note
• B)accrued interest on notes receivable
• C)bank discount (note payable)
• D)bank discount (note receivable)
• E)contingent liability
• F)rate of interest
• G)discounting (note payable)
• H)payee
• I)notes receivable register
• J)non-interest-bearing note
• K)interest-bearing note

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Definitions:

Coupon Rate

The annual interest rate paid on a bond's face value, indicating the amount of periodic payments to the bondholder.

TIPS Bond

Treasury Inflation-Protected Securities are U.S. government bonds that are indexed to inflation in order to protect investors from the negative effects of rising prices.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which does not necessarily reflect its market value.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, including all interest payments and the repayment of the principal.