Match the Terms with the Definitions

question 2

Multiple Choice

Match the terms with the definitions.
-The accumulation and investment of money over a period of years to provide the amount needed for the redemption of bonds.

• A)amortization
• B)bond
• C)bond indenture
• D)bond sinking fund
• E)callable bonds
• F)carrying value
• G)convertible bonds
• H)coupon bonds
• I)debenture bonds
• J)discount
• K)face value
• L)market rate
• M)mortgage bonds
• N)premium
• O)principal
• P)registered bonds
• Q)secured bonds
• R)serial bonds
• S)stated rate
• T)term bonds

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Definitions:

Debt-Equity Ratio

A ratio calculating the balance of debt and equity utilized for financing a company's assets.

Risk-Free Rate

A hypothetical profit rate from a risk-free investment, usually shown by the earnings on state-backed securities.

Yield-to-Maturity

The total return anticipated on a bond if the bond is held until its maturity date, considering all interest payments and the repayment of principal.