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Accounting Bonds
Question | Answer |
---|---|
Bond | Interest bearing note |
Earnings Per Share | income earned by each share of common stock |
Bond/Trust Indenture | the underlying contract between the company issuing bonds and the bondholders |
Principal | Face value of each bond |
Term Bond | when all bonds of an issue mature at the same time |
Serial Bond | when all bonds mature over several dates |
Convertible Bond | bond that may be exchanged for other securities, such as common stock |
Callable Bond | bond that a corporation reserves the right to redeem before their maturity |
Debenture Bond | bond issued on the basis of the general credit of the corporation |
Contract/Stated/Coupon Rate | interest to be paid on the face amount of the bond |
Market/Effective Rate of Interest | rate determined from sales and purchases of other bonds |
Carrying Amount of Bonds Payable | face amount of the bonds less any unamortized discount or plus any unamortized premium |
Installment Note | debt that requires the borrower to make equal periodic payments to the lender for the term of the note |
Mortgage Note | An installment note that is secured by a pledge of the borrower’s assets |
Sinking fund | corporation issuing bond must transfer cash to a special cash fund over the life of the bond-ensures cash to pay at maturity date |
Par | value assigned to every share of stock |