Terms related to long-term debt. Place the letter of the best matching phrase before each word. 1. Indenture 6. Times Interest Earned Ratio 7. Mortgage 8. Premium on Bonds 9. Reacquisition Price 10. Market Rate 2. Refunding 3. Bonds Issued at Par 4. Carrying Value 5. Nominal Rate a. Requires that bond discount be reported in the balance sheet as a direct deduction from the face of the bond. . The interest paid each period is the effective interest at date of issuance. d. Rate of interest actually earned by the bondholders. e. Results when bonds are sold below par. f. Results when bonds are sold above par. g. The replacement of an existing bond issuance with a new one. h. Price paid by issuing corporation for its own bonds. i. Book value of bonds at any given date. į Ratio of current assets to current liabilities. k. The bond contract or agreement. I. Indicates the company's ability to meet interest payments as they come due. m. Ratio of debt to equity. n. Exclusive right to manufacture a product. o. A document that pledges title to property as security for a loan.

Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter11: Bond Pricing And Amortization (bonds)
Section: Chapter Questions
Problem 3R
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Terms related to long-term debt.
Place the letter of the best matching phrase before each word.
1.
Indenture
6.
Times Interest Earned Ratio
Refunding
Bonds Issued at Par
2.
7.
Mortgage
3.
8.
Premium on Bonds
Carrying Value
Nominal Rate
4.
9.
Reacquisition Price
5.
10.
Market Rate
Requires that bond discount be reported in the balance sheet as a direct deduction from the face of the bond.
b.
a.
Rate set by party issuing the bonds which appears on the bond instrument.
The interest paid each period is the effective interest at date of issuance.
d.
C.
Rate of interest actually earned by the bondholders.
Results when bonds are sold below par.
f.
e.
Results when bonds are sold above par.
The replacement of an existing bond issuance with a new one.
g.
h.
Price paid by issuing corporation for its own bonds.
Book value of bonds at any given date.
Ratio of current assets to current liabilities.
i.
k.
The bond contract or agreement.
1. Indicates the company's ability to meet interest payments as they come due.
Ratio of debt to equity.
m.
n.
Exclusive right to manufacture a product.
o.
A document that pledges title to property as security for a loan.
For the toolbar, press ALT+F10 (PC) or ALT+EN+F10 (Mac).
Transcribed Image Text:Terms related to long-term debt. Place the letter of the best matching phrase before each word. 1. Indenture 6. Times Interest Earned Ratio Refunding Bonds Issued at Par 2. 7. Mortgage 3. 8. Premium on Bonds Carrying Value Nominal Rate 4. 9. Reacquisition Price 5. 10. Market Rate Requires that bond discount be reported in the balance sheet as a direct deduction from the face of the bond. b. a. Rate set by party issuing the bonds which appears on the bond instrument. The interest paid each period is the effective interest at date of issuance. d. C. Rate of interest actually earned by the bondholders. Results when bonds are sold below par. f. e. Results when bonds are sold above par. The replacement of an existing bond issuance with a new one. g. h. Price paid by issuing corporation for its own bonds. Book value of bonds at any given date. Ratio of current assets to current liabilities. i. k. The bond contract or agreement. 1. Indicates the company's ability to meet interest payments as they come due. Ratio of debt to equity. m. n. Exclusive right to manufacture a product. o. A document that pledges title to property as security for a loan. For the toolbar, press ALT+F10 (PC) or ALT+EN+F10 (Mac).
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