107. Match each of the following terms a through j with the appropriate definitions 1 through 10.
1. An obligation requiring a series of periodic payments to the lender
Bearer bonds
2. Bonds with interest coupons attached to their certificates; the bondholders detach the coupons when they mature and present them to a bank or broker for collection
Serial bonds
3. The contract between the bond issuer and the bondholders; it identifies the rights and obligations of the parties
Effective interest rate method
4. Bonds that are scheduled for payment on one specified date
Installment note
5. An accounting method that allocates interest expense over the bonds' life in a way that yields a constant rate of interest
Market rate
6. Bonds that are made payable to whoever holds them; also called unregistered bonds
Unsecured bonds
7. Bonds that can be exchanged by the bondholders for a fixed number shares of the issuing corporation's common stock
Convertible bonds
8. Bonds that mature at more than one date and are usually paid over a number of periods
Coupon bonds
9. Bonds that are backed by the issuer's credit standing
Term bonds
10. The interest rate that borrowers are willing to pay and that lenders are willing to accept for a particular bond at its risk level
Bond indenture
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