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Bond Terminology

Enter the letter of the description A through H that best fits each term 1 through 8.

A. Records and tracks the bondholders' names.
B. Is unsecured; backed only by the issuer's credit standing.
C. Has varying maturity dates for amounts owed.
D. Identifies rights and responsibilities of the issuer and the bondholders.
E. Can be exchanged for shares of the issuer's stock.
F. Is unregistered; interest is paid to whoever possesses them.
G. Maintains a separate asset account from which bondholders are paid at maturity.
H. Pledges specific assets of the issuer as collateral.

1. _______ Debenture
2. _______ Bond indenture
3. _______ Bearer bond
4. _______ Registered bond
5. _______ Sinking fund bond
6. _______ Convertible bond
7. _______ Secured bond
8. _______ Serial bond

Solution Summary

The solution explains the matching of the description with its term