Match the Definitions with the Appropriate Terms. Definition

question 108

Essay

Match the definitions with the appropriate terms. Definition
A. The issue price of the bond.
B. A cash fund set up to retire bonds.
C. The theoretically correct approach to amortizing bond discount or premium.
D. Involves repayment of the bond in instalments.
E. The bond contract containing legal provisions relating to the bond.
F. None of the above.

Term

____ 1. Equipment trust bond
____ 2. Effective-interest amortization method
____ 3. Current cash equivalent amount
____ 4. Serial bond
____ 5. Ordinary payment bond
____ 6. Debenture
____ 7. Bond sinking fund
____ 8. Straight-line amortization method
____ 9. Indenture

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Definitions:

Bonds

Fixed-income securities that represent a loan made by an investor to a borrower, typically corporate or governmental.

Interest Accrued

The amount of interest that has accumulated over time but has not yet been paid or charged.

Par Value

The nominal value of a bond or stock as declared by the issuer, which might not represent its actual market value.

Exchange Rate

The price at which one currency can be exchanged for another currency in the foreign exchange market.