bonds (corfin)
Quiz by Robert Couch
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30 questions
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- Q1BondA 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
- Q2Debt-to-Equity RatioLoan 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
- Q3Discount on Bonds PayableDifference 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
- Q4Contract RateInterest 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
- Q5LeaseInterest 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
- Q6Market Interest RateInterest 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
- Q7MortgageContract 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
- Q8Par Value of a BondContract 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
- Q9Premium on a BondDifference 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
- Q10Secured BondDifference 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
- Q11When 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.FalseTrue30s
- Q12When the market rate is lower than a bond's stated (or contracted) rate, the bond will trade at a premium over its par value.TrueFalse30s
- Q13When a bond is issued, the issuing company records a credit to Bonds Payable.FalseTrue30s
- Q14When a bond matures, the issuing company will record a debit to Bonds Payable.FalseTrue30s
- Q15When interest on a bond is paid, the Interest Expense account is debited.FalseTrue30s