Chapter 9, Problem 7SE

Bond terms (Learning Objective 5) 5-10 min.

Match the following terms with the correct definition.

1. Bonds that all mature at the same time	a. Convertible bonds
2. Interest rate investors are expecting to receive for similar bonds of equal risk	b. Premium on bond
3. Unsecured bonds backed only by the good faith of the borrower	c. Callable bonds
4. Amount of a bond's issue price over its maturity value	d. Debentures
5. Bonds that may be converted into the common stock of the issuing company at the option of the investor	e. Term bonds
6. Amount of a bond's maturity value over its issue price	f. Serial bonds
7. Interest rate that determines the amount of cash interest the borrower pays and the investor receives	g. Discount on bond
S. Bonds in the same bond issuance that mature at different times	h. Stated interest rate
9. Bonds that the issuer may call or pay off at a specified price before maturity	i. Market interest rate