1. Match each of the following bond classifications (a-h) with the appropriate c
ID: 2513903 • Letter: 1
Question
1. Match each of the following bond classifications (a-h) with the appropriate characteristic (1-8) by entering the appropriate letter in the space provided. f Zero-coupon bonds Debenture bonds Mortgage bonds Bond Indenture Par Value Nominal rate Callable bonds Convertible bonds Serial bonds Effective Interest rate b. d. Portions of the bond mature in periodic installments 2. The principle of the bond. Bonds that are secured by a lien against specific assets. Bonds that can be exchanged for a predetermined number of shares of stock. 4. s. Bonds whose marketability is based on the general credit rating of the issuing company. 6. A document that defines the rights of the bond holder 7. Bonds that the company has the right to retire before their maturity date. Bonds on which no interest is paid until the maturity 8. date. The rate of interest the bond issuer has agreed to pay until maturity 10. The maret rate of interest at the time a bond is sold.Explanation / Answer
A) Debenture bonds ------ (5) Bonds whose marketability is based on the general credit rating of the issuing company.
B) Mortgage bonds------- (3) Bonds that are secured by a lien against specific assets.
C) Bond Indenture-------- (6) A document that defines the rights of the bond holder.
D) Par value-------- (2) The principle of the bond.
E) Nominal rate------- (9) The rate of interest the bond issuer has agreed to pay until maturity.
F ) Zero-coupon bonds------- (8) Bonds on which no interest is paid until the maturity date.
G) Callable bonds ------------ (7) Bonds that the company has the right to retire before their maturity date.
H) Convertible bonds---------- (4) Bonds that can be exchanged for a predetermined number of shares of stock.
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