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Definition
| A legal document that indicates the name of the issuer, the face value of the bonds, and such other data as the contractual interest rate and the maturity date of the bonds. |
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Definition
| A form of interest-bearing notes payable issued by corporations, universities, and governmental entities. |
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Definition
| Bonds that are the issuing company can retire at a stated dollar amount prior to maturity. |
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Definition
| A contractual agreement allowing one party ( the lessee) to ue the assets of another party (the lessor); accounted for like a debt-financed purchase by the lessee. |
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Term
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Definition
| Events with uncertain outcomes that may represent potential liabilities. |
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Term
| Contractual (stated) interest rate |
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Definition
| Rated used to determine that mount of interest the borrower pays and the investor receives. |
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Definition
| Bonds that can be converted into common stock at the bondholder's option. |
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Term
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Definition
| A debt that a company reasonably expects to pay (1) from existing current assets or through the creation of other current liabilities, and (2) within one year or the operating cycle, whichever is longer. |
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Definition
| The difference between the face value of a bond and its selling price, when a bond is sold for less that its face value. |
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Term
| Effective-interest method of amortization |
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Definition
| A method of amortizing bond discount or bond premium that results in periodic interest expense equal to a constant percentage of the carrying value of the bonds. |
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Term
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Definition
| Rate established when bonds are issued that remains constant in each interest period. |
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Term
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Definition
| Amount of principal due at the maturity date of the bond. |
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Definition
| Obligations that a company expects to pay more than one year in the fututre |
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Term
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Definition
| the rate investors demand for loaning funds to the corporation. |
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Term
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Definition
| Te date on which the final payment on a bond is due from the bond issuer to the investor |
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Term
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Definition
| A Long term note secured by a mortgage that pledges title to specific assets as a security for the loan. |
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Term
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Definition
| an obligation in the form of a written note. |
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Term
| Off-balance sheet financing |
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Definition
| The intentional effort by a company to structure its financing arrangements so as to avoid showing liabilities on its balance sheet |
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Term
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Definition
| a contractual agreement allowing one party (the lessee) to use thee asset of another party (the lessor; accounted for as a rental |
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Term
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Definition
| the difference between the selling price and the face value of a bond when a bond is sold for more that its face value |
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Term
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Definition
| the value today of an amount to be received at some date in the future after taking into account current interest rates |
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Term
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Definition
| specific assets of the issuer pledged as collateral |
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Term
| Straight-line method of amortization |
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Definition
| a method of amortizing bond discount or bond premium that allocates the same amount to interest expense in each interest period. |
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Term
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Definition
| the relationship between time and money. A dollar received today is wroth more than a dollar promised at some time in the future |
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Term
| Times interest earned ratio |
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Definition
| A measure of a company's solvency, calculated by dividing income before interest expense and taxes by interest expense. |
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Term
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Definition
| Bonds issued against the general credit of the borrower |
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