Question

Match the following bond terms by selecting the term that best describes each phrase.

a.		Principal is payable to the person who has possession of the bonds
b.		When the borrower must pay the principal amount to the lender
c.		Matures in instalments over a period of time
d.		Unsecured bond backed only by the good faith of the issuer
e.		Contract agreed to between the issuer of the bonds and the purchaser
f.		The contractual rate of interest that the issuer must pay the bondholders
		(another name for contract interest rate)
g.		Assets of the issuer are provided as collateral
h.		May be changed into the company's common shares
i.		Interest rate that determines the amount of cash interest the borrower
		pays and the investor receives each year
j.		The amount the company borrows from the bondholder

and the options are

Bearer bonds

Bond Indenture

Contract interest rate

Convertiable bonds

Coupon rate

Debentures

Maturity rate

Maturity value

Secural bonds

Serial bonds

Answer 1

Answer-

Column A	Column B
Bearer bonds	Principal is payable to the person who has possession of the bonds
Maturity Date	When the borrower must pay the principal amount to the lender
Serial Bonds	matures in installments over a period of time
Debentures	unsecured bond backed only by the good faith of the issuer
Bond Indenture	contract agreed to between the insurer of the bonds and the purchaser
Coupon Rate	the contractual rate of interest that the issuer must pay the bondholders
Secured Bonds	assets of the issuer are provided as collateral
Convertible Bonds	may be changed into the company's common shares
Contract interest rate	interest rate that determines the amount of cash interest the borrower pays and the investor receives each year
Maturity value	the amount the company borrows from the bondholder