Answers A+ Graded (2025)
Secured .Bond .- .CORRECT .ANSWER-a .bond .issued .with .some .form .of .collateral
Mortgage .Bond .- .CORRECT .ANSWER-a .bond .secured .by .real .estate
Unsecured .Bond .- .CORRECT .ANSWER-A .bond .with .no .collateral; .also .called .a
.debenture .bond.
Callable .Bond .- .CORRECT .ANSWER-a .bond .that .the .issuer .has .the .right .to .pay
.off .before .its .maturity .date
Convertible .Bond .- .CORRECT .ANSWER-may .be .exchanged .for .common .stock .of
.the .firm, .at .the .holder's .option
When .yield=interest .rate .- .CORRECT .ANSWER-Bond .sells .at .par
When .yield>interest .rate .- .CORRECT .ANSWER-Bond .sells .at .discount
When .yield<interest .rate .- .CORRECT .ANSWER-Bond .sells .at .premium
Discount .- .CORRECT .ANSWER-Debit
Premium .- .CORRECT .ANSWER-Credit
Effective .interest .rate .- .CORRECT .ANSWER-Interest .rate=yield*book .value .of
.bond .at .start .of .period
Straight-line .method .- .CORRECT .ANSWER-Equal .amounts .of .premium .or
.discount .are .amortized .to .interest .expense .each .period
Debt .to .equity .- .CORRECT .ANSWER-Total .liabilities/total .equity
Debt .to .total .assets .- .CORRECT .ANSWER-Total .liabilities/total .assets
Long-term .debt .to .equity .- .CORRECT .ANSWER-Long-term .debt/total .equity