Bearer (coupon) Bonds
Bonds not registered. (p. 642)
Bond CertificateA legal document that shows the surname of the issuer, the challenge value the the bonds, and such other data together the contractual interest rate and also maturity date of the bonds. (p. 643)
Bond IndentureA legal paper that sets forth the terms of the shortcut issue. (p. 643)
BondsA type of interest-bearing notes payable approve by corporations, universities, and governmental entities. (p. 640)
Callable BondsBonds that are subject come retirement at a proclaimed dollar amount before maturity at the option of the issuer. (p. 642)
Capital LeaseA contractual plan that transfers substantially all the benefits and risks of property to the lessee so that the lease is in result a acquisition of the property. (p. 657)
Contractual interest RateRate provided to recognize the lot of attention the borrower pays and also the investor receives. (p. 643)
Convertible BondsBonds the permit bondholders to convert them into common stock at your option. (p. 642)
Debenture BondsBonds issued versus the basic credit of the borrower. Additionally called unsecured bonds. (p. 642)
Debt to complete Assets RatioA solvency measure that shows the percent of complete assets provided by creditors; computed as total debt separated by full assets. (p. 659)
Face ValueAmount of major the issuer need to pay at the maturity day of the bond. (p. 643)
Long-Term LiabilitiesObligations expected to be payment after one year. (p. 640)
Market interest RateThe rate investors demand for loaning accumulation to the corporation. (p. 644)
Mortgage BondA shortcut secured by genuine estate. (p. 642)
Mortgage keep in mind PayableA long-term keep in mind secured by a mortgage the pledges title to specific assets as security for a loan. (p. 655)
Operating LeaseA contractual plan giving the lessee momentary use that the property, with continued ownership that the residential or commercial property by the issuer. (p. 657)
Registered Bondsbonds approve in the name of the owner. (p. 642)
Secured BondsBonds the have certain assets the the issuer pledged as collateral. (p. 642)
Serial BondsBonds the mature in installments. (p. 642)
Sinking FundCash or other assets collection aside come retire debt. (p. 654)
Sinking money BondsBonds secured by particular assets collection aside come retire them. (p. 642)
Straight-Line technique of AmortizationA an approach of amortizing bond discount or bond premium that allocates the exact same amount to interest expense in every period. (p. 648)
Term BondsBonds the mature in ~ a single specified future date. (p. 642)
Times interest Earned RatioA solvency measure up that shows a company"s capability tomeet attention payments, computed by dividing income prior to income taxes and also interest price by attention expense. (p. 659)
Unsecured BondsBonds issued versus the basic credit of the borrower. Also called debenture bonds. (p. 642)
Effective-Interest an approach of AmortizationA technique of amortizing link discount or shortcut premium that outcomes in regular interest cost equal to a consistent percentage of the carying worth of the bonds. (p. 664)
Effective-Interest RateRate created when bonds room issued that remains consistent in each interest period.

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(p. 664)