Match Each Term with the Appropriate Definition

question 160

Multiple Choice

Match each term with the appropriate definition.Not all definitions will be used.
-Carrying value

• A)When a bond is issued for a price greater than its face value.
• B)Also known as the face value or par value of a bond.
• C)Rate of interest that investors demand from a bond.
• D)A bond with the feature that allows creditors to exchange the bond for company stock.
• E)The amount a company receives when it sells a bond;also known as issue price.
• F)The interest rate printed on the bond certificate.
• G)The time at which the face value of a bond must be paid to the lender.
• H)Is multiplied by the market interest rate to calculate the (effective)interest expense on a bond.
• I)A bond feature that changes the interest rate on the bond with market conditions.
• J)When a bond is issued for a price less than its face value.
• K)A bond with the feature that allows the borrowing company to pay off a bond whenever it wishes.
• L)A bond with the feature that lets creditors examine financial data and demand new loan conditions.

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Definitions:

Legislative

Legislative refers to the branch of government that has the authority to make, amend, and repeal laws.

Executive

The branch of government responsible for enforcing laws and administering public policy.

Judicial

Relating to the system of courts that interpret and apply the law in legal cases, or pertaining to judges and their activities.

Seventeenth Amendment

An amendment to the United States Constitution that established the direct election of U.S. Senators by the citizens of a state, rather than by state legislatures.