Bond indenture - Study guides, Class notes & Summaries

coupon - The stated interest payment made on a bond face value - The principal amount of a bond that is repaid at the end of the term. Also called par value. coupon rate - The annual coupon divided by the face value of a bond. (coupon rate = coupon/faсe value) maturity - The specified date on which the principal amount of a bond is paid. yield to maturity (YTM) - The rate required in the market on a bond. Bond value - Present value of the coupons + Present value of the face amou...

UGBA 10 - Module 1Secured Loan (Asset-Backed Loan) - correct answer Loan to finance an asset, backed by the borrower pledging the asset as collateral to the lender Collateral - correct answer Asset pledged for the fulfillment of repaying a loan Loan Principal - correct answer Amount of money that is loaned and must be repaid Interest - correct answer Fee paid to a lender for the use of borrowed funds Annual Percentage Rate (APR) - correct answer One-year rate that is charged for the ...

CFA Level 1 - Fixed Income Exam Questions with Correct Answers Coupon Rate Floor - Answer-Minimum periodic coupon interest payment received by lender/security owner. Coupon Rate Collar - Answer-Simultaneous combination of both cap and floor. Regular Redemption - Answer-When bonds are redeemed under the call provisions specified in the bond indenture. Special Redemption - Answer-When bonds are redeemed to comply with a sinking fund provision or because of a property sale mandated by...

Chapter 7 Exam Questions With Verified Answers What do fixed income securities consist of? - answerdebit instruments and preferred stock What is a bond? - answera debt security in which a borrower promises to pay a specified interest rate and principal at a future date. _______________________ are not completely risk-less, since their prices will decline when the interest rate rises - answertreasury bonds What is a treasury bond? - answera marketable, fixed-interest U.S. government debt s...

Accounting - The system of recording, reporting, and summarizing past financial information and transactions. Accounts Receivable Turnover (AR Turnover) - An activity ratio found by credit sales divided by accounts receivable. Activity Ratios - A category of ratios that measure how well a company uses its assets to generate sales or cash, showing the firm's operational efficiency and profitability. Additional Funds Needed (AFN) - Another name for the discretionary financing needed or exte...

Intermediate Accounting Chapter 14What does Long-Term consists of? - correct answer It consists of a probable future sacrifice of economic benefits arising from present obligations that are not payable within a year or the operating cycle of the company, whichever is longer. What is a bond and where does it arise from? - correct answer It arises from a contract known as a bond indenture and it represents a promise to pay (1) a sum of money at a designated maturity date, plus (2) periodic in...

What is the principal amount of a bond that is repaid at the end of the loan term called? - Answer- face value A bond's annual interest divided by its face value is referred to as the: - Answer- coupon rate The market-required rate of return on a bond that is held for its entire life is called the: - Answer- yield to maturity The written agreement that contains the specific details related to a bond issue is called the bond - Answer- indenture This morning, Jeff found an aged bond c...

Bonds that grant the issuer the right to extinguish the debt prior to maturity are referred to as which type of bond? A) Put bond B) Debenture C) Callable bond D) Subordinated bond E) Covenant bond o :## C There are 3 directors' seats up for election. If you own 1,000 shares of stock and have been granted a total of 3,000 votes, then the firm uses the voting procedure referred to as: A) Cumulative voting B) Absolute priority voting C) Sequential voting D) Straight voting E) Mark...

C214 Financial Management Final Exam Questions With Answers Accounting - ANSWER- The business function responsible for creating the historical financial statements. Accounts Payable - ANSWER- A current liability that represents any money the firm owes suppliers and other firms. Typically the firm does not pay interest on accounts payable. Accounts Receivable (AR) - ANSWER- A type of current asset which represents any money owed to the firm for services rendered. Accounts Receivable (...

C214 - Financial Management Exam Questions and Answers 100% Pass Accounting - Answer- The business function responsible for creating the historical financial statements. Accounts Payable - Answer- A current liability that represents any money the firm owes suppliers and other firms. Typically the firm does not pay interest on accounts payable. Accounts Receivable (AR) - Answer- A type of current asset which represents any money owed to the firm for services rendered. Accounts Receivable ...