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:

Value-Added

The enhancement a company gives its product or service before offering the product to customers, which can differentiate a company in the market, increase product value, and command a higher price.

Design Engineering

The branch of engineering focused on the design, development, and testing of products, systems, or structures, ensuring they meet specified requirements.

External Failure Cost

Costs incurred when a product or service fails to meet quality standards after it is delivered to the customer, including returns, repairs, and warranty claims.

Non-Value-Added

Activities or processes that do not add any significant value to the final product or service from the customer's perspective.