CH. 10

The difference between the selling price&the face value of a bond when a bond is sold for more than its face value.

The date on which the final payment on a bond is due from the bond issuer to the investor.

Obligations that a company expects to pay more than one year in the future.

The difference between the face value of a bond & it's selling price when a bond is sold for less than it's face value.

relationship between time&money. A dollar received today is worth more than a dollar promised at some time in the future

Bonds that can be converted into common stock at the bondholder's option.

measure of a company's solvency, calculated by dividing the sum of NI, interest exp.& income tax exp. by interest exp.

A form of interest-bearing notes payable issued by corporations, universities, & governmental agencies.

A long-term note secured by a mortgage that pledges title to specific assets as security for the loan.

intentional effort by company to structure its financing arrangements so as to avoid showing liab. on its balance sheet.

Bonds that the issuing company can redeem at a stated dollar amount prior to maturity.

The rate investors demand for loaning funds to the corporation.

A contractual agreement allowing one party to use the asset of another party;account for debt-financial purch. by lessee

method of amortizing bond discount/bond premium that allocates the same amount to interest exp. in each interest period.

Events with uncertain outcomes that may represent potential liabilities.

Amount of principle due at the maturity date of the bond.

Method of amortizing bond discount/bond premium that results in periodic intr. exp. = to constant % of the carrying valu

legal docu. indicates name of issuer,face value of the bonds,&other data such as the contractual int. rate, maturity dat

Rate used to determine the amount of interest the issuer pays & the investor receives.

Bonds that have specific assets of the issuer pledged as collateral.

An obligation in the form of a written note.

contractual agreement allowing one party to use the asset of another party; accounted for as a rental.

Bonds issued against the general credit of the borrower.

Rate established when bonds are issued that maintains constant value for interest exp.as % of bond carrying value bonds.

debt that company reasonably expects to pay from existing current assets/through creation of other current liab. 1 yr

The value today of an amount to be received at some date in the future after taking into account current interest rate.