Choose the Appropriate Letter to Match the Term and the Definition.Not

question 209

Short Answer

Choose the appropriate letter to match the term and the definition.Not all definitions will be used.
Term:
1._____ Convertible
2._____ Carrying value
3._____ Discount
4._____ Callable
5._____ Maturity
6._____ Market interest rate
7._____ Stated interest rate
8._____ Premium
Definition:
A.A bond feature that changes the interest rate on the bond with market conditions.
B.When a bond is issued for a price less than its face value.
C.Also known as the face value or par value of a bond.
D.A bond with the feature that allows creditors to exchange the bond for company stock.
E.The interest rate printed on the bond certificate.
F.A bond with the feature that lets creditors examine financial data and demand new loan conditions.
G.The amount a company receives when it sells a bond; also known as issue price.
H.When a bond is issued for a price greater than its face value.
I.A bond with the feature that allows the borrowing company to pay off a bond whenever it wishes.
J.Rate of interest that investors demand from a bond.
K.The time at which the face value of a bond must be paid to the lender.
L.Is multiplied by the market interest rate to calculate the (effective)interest expense on a bond.

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Definitions:

Kansas-Nebraska Act

A piece of legislation passed by the U.S. Congress in 1854 that allowed inhabitants of Kansas and Nebraska territories to decide whether to allow slavery, leading to significant political and social conflict.

Popular Sovereignty

A principle that the authority of a state and its government are created and sustained by the consent of its people, through their elected representatives.

Missouri Compromise

An agreement passed in 1820 between the pro-slavery and anti-slavery factions in the United States Congress, involving primarily the regulation of slavery in the western territories.

Republican Party

One of the two major political parties in the United States, traditionally emphasizing limited government, free market principles, and conservative social policies.