ch 11 test Name________________________Row____
Match the following terms to the most appropriate answer: ( ½ point each)
a.
contract rate
e.
interest expense
b.
effective rate
f.
interest payment
c.
bond discount
g.
Amortization
d.
bond premium
__g__ 1. the allocation of a premium or discount over the life of a bond
__b__ 2. the value reported on the income statement
__f__ 3. the return required by the market on the day of issuance
__c__ 4. if the contract rate exceeds the effective rate
__a__ 5. the rate printed on the bond certificate
___d_ 6. if the contract rate is less than the effective rate
___e_ 7. face value times contract rate
Match the following terms to the most appropriate answer: (1/2 point each)
a.
Debenture
e.
Term bond
b.
Face value
Convertible bond
c.
Callable bond
g.
Serial bond
d.
Indenture
