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Definition
| A security, usualy long term, representing money that a corporation or other entity borrows from the investing public. |
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Definition
| Evidence of an organization's debt to a bondholder. |
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| A contract that defines the terms of a bond issue. |
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| The total value of bonds issued at one time. |
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Definition
| Bonds that the issuing corporation can buy back and retire at a call price before their maturity dates. |
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Definition
| A specified price, usually above face value, at which a corporation can buy back its bonds before maturity. |
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Definition
| A long-term lease that resembles a purchase or sale on installment and in which the leasee assumes the risk of ownership. |
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Definition
| Bonds that can be exchanged for the issuing corporation's common stock. |
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Definition
| Bonds not registered with the issuing organization that bear coupons stating the amount of interest due and the payment date. |
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Definition
| The result of using different methods to calculate income taxes for financial reporting and tax purposes. |
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Definition
| The amount by which a bond's face value exceeds its issue price, which occurs when the market interest rate is higher than the face interest rate. |
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| Early extinguishment of debt |
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Definition
| The retirement of a bond issue before its maturity date. |
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Term
| Effective interest method |
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Definition
| A method of amortizing bond discoutns or premiums that applies a constant interest rate (the market rate when the bonds were issued) to the bonds' carrying value at the beginning of each interest period. |
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Definition
| The fixed rate of interest paid to bondholders based on the face value of the bonds. |
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Definition
| A corporation's ability to increase earnings for stockhoders by earning more on assets that it pays in interest on the debt it incurred to finance the assets. Also called trading on equity. |
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Definition
| The rate of interest paid in the market on bonds of similar risk. Also called effective interest rate. |
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Definition
| A debt secured by real property. |
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Term
| Off-balance-sheet financing |
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Definition
| Structuring long-term debts in such a way that they do not appear as liabilities on the balance sheet. |
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Definition
| A short-term lease in which the risks of ownership remain with the lessor and for which payments are recorded as rent expense. |
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| Other postretirement benefits |
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Definition
| Health care and other nonpension benefits paid after retirement but earned while the employee is still working. |
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Definition
| A fund established by the contributions of an employer and often of employees from which payments are made to employees after retirement or upon disability or death. |
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Definition
| A contract requiring a company to pay benefits to its emplooyees after they retire. |
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Term
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Definition
| The amount by which a bond's issue price exceeds its face value, which occurs when the market interest rate is lower than the face interest rate. |
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Definition
| Bonds that the issuing compnay registers in the names of the bondholders. |
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Definition
| Bonds that carry a pledge of a certain assets as a guarantee of repayment. |
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Definition
| Bonds in one issue that mature on different dates. |
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Definition
| A method of amortizing bond discounts or premiums that allocates the discount or premium equally over each interest period of the life of a bond. |
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Definition
| Bonds in one issue that mature at the same time. |
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Definition
| Bonds issued on an organization's general credit. Also called debenture bonds. |
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Term
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Definition
| Bonds that do not pay periodic interest but that pay a fixed amount on the maturity date. |
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Term
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Definition
| A measure of the degree of protection a company has from default on interest payments; (Income Before Income Taxes + Interest Expense) ÷ Interest Expense. |
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