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bonds (corfin)

Quiz by Robert Couch

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30 questions
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  • Q1
    Bond
    A loan where the issuing organization promises to pay the par (or face) value, plus interest payments at a stated contract rate.
    Gives the creditor the right to certain company assets as a guarantee for repayment.
    Shows the proportion of a company financed by ccreditors in comparison with that financed by owners.
    Loan agreement that protects a lender through the right to sell a specific asset in the event of default.
    30s
  • Q2
    Debt-to-Equity Ratio
    Loan agreement that protects a lender through the right to sell a specific asset in the event of default.
    Gives the creditor the right to certain company assets as a guarantee for repayment.
    Shows the proportion of a company financed by ccreditors in comparison with that financed by owners.
    Shows the proportion of a company financed by ccreditors in comparison with that financed by owners.
    30s
  • Q3
    Discount on Bonds Payable
    Difference between a bond’s par value and its lower issue price.
    Difference between a bond’s issue price and it's lower par value.
    Interest rate that borrowers are willing to pay and lenders are willing to accept for a specific lending agreement given the borrowers’ risk level.
    Contract specifying the rental of property.
    30s
  • Q4
    Contract Rate
    Interest rate specified for a bond, multiplied by the par value to determine the interest paid each period.
    Difference between a bond’s issue price and it's lower par value.
    Amount per share set in the ARTICLES OF INCORPORATION of a CORPORATION to be entered in the CAPITAL STOCKS account where it is left permanently and signifies a cushion of EQUITY capital for the protection of CREDITORS.
    Contract specifying the rental of property.
    30s
  • Q5
    Lease
    Interest rate that borrowers are willing to pay and lenders are willing to accept for a specific lending agreement given the borrowers’ risk level.
    Amount per share set in the ARTICLES OF INCORPORATION of a CORPORATION to be entered in the CAPITAL STOCKS account where it is left permanently and signifies a cushion of EQUITY capital for the protection of CREDITORS.
    Contract specifying the rental of property.
    Gives the creditor the right to certain company assets as a guarantee for repayment.
    30s
  • Q6
    Market Interest Rate
    Interest rate that borrowers are willing to pay and lenders are willing to accept for a specific lending agreement given the borrowers’ risk level.
    Difference between a bond’s issue price and it's lower par value.
    A loan where the issuing organization promises to pay the par (or face) value, plus interest payments at a stated contract rate.
    Difference between a bond’s par value and its lower issue price.
    30s
  • Q7
    Mortgage
    Contract specifying the rental of property.
    Loan agreement that protects a lender through the right to sell a specific asset in the event of default.
    Contract specifying the rental of property.
    Amount per share set in the ARTICLES OF INCORPORATION of a CORPORATION to be entered in the CAPITAL STOCKS account where it is left permanently and signifies a cushion of EQUITY capital for the protection of CREDITORS.
    30s
  • Q8
    Par Value  of a Bond
    Contract specifying the rental of property.
    Loan agreement that protects a lender through the right to sell a specific asset in the event of default.
    Interest rate specified for a bond, multiplied by the par value to determine the interest paid each period.
    Amount per share set in the ARTICLES OF INCORPORATION of a CORPORATION to be entered in the CAPITAL STOCKS account where it is left permanently and signifies a cushion of EQUITY capital for the protection of CREDITORS.
    30s
  • Q9
    Premium on a Bond
    Difference between a bond’s par value and its lower issue price.
    A loan where the issuing organization promises to pay the par (or face) value, plus interest payments at a stated contract rate.
    Interest rate specified for a bond, multiplied by the par value to determine the interest paid each period.
    Difference between a bond’s issue price and it's lower par value.
    30s
  • Q10
    Secured Bond
    Difference between a bond’s par value and its lower issue price.
    Interest rate specified for a bond, multiplied by the par value to determine the interest paid each period.
    Gives the creditor the right to certain company assets as a guarantee for repayment.
    A loan where the issuing organization promises to pay the par (or face) value, plus interest payments at a stated contract rate.
    30s
  • Q11
    When the market rate is higher than a bond's stated (or contracted) rate, the bond will trade at a discount relative to its par value.
    False
    True
    30s
  • Q12
    When the market rate is lower than a bond's stated (or contracted) rate, the bond will trade at a premium over its par value.
    True
    False
    30s
  • Q13
    When a bond is issued, the issuing company records a credit to Bonds Payable.
    False
    True
    30s
  • Q14
    When a bond matures, the issuing company will record a debit to Bonds Payable.
    False
    True
    30s
  • Q15
    When interest on a bond is paid, the Interest Expense account is debited.
    False
    True
    30s

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