introduction chapters
chapter 1
31. Although one can readily determine the present value factors for a lump sum via tables or computers, a equally simple method is to just divide "1" by , where "n" is the number of periods and "i" is the interest rate per period.
2. is the amount to which an outlay will grow by the end of a designated time period, while is the inverse or reciprocal technique.
3. An is a series of equal cash flows.
4. The provisions of a bond issue are normally stipulated in an accompanying document called a .
5. In contrast to secured bonds, have no assets pledged as security.
6. bonds permit the issuer to repay bondholders prior to the stipulated maturity date.
7. A fund that is set aside to provide for the eventual repayment of bonds at maturity is known as a .
8. The set amount to be repaid on a bond's maturity date is known as , whereas, the bond payable amount less any unamortized discount or plus any unamortized premium is known as .
9. The interest rate printed on the face of a bond certificate is called the , whereas the actual interest rate is the .
10. When bonds are sold at more than face value, the difference between the issue price and the face value is commonly referred to as a .
11. Under , an equal amount of discount is allocated to each interest period, whereas, under the method of amortization, interest expense is calculated as a constant percentage of the bond carrying value.
12. Premium amortization causes interest expense to .
13. For bonds issued between interest dates, the issuer will receive accrued interest on the date, and repay this interest on the next date.
14. If a bond is retired early, a gain will result if the retirement price is the .
15. Ratio analysis of indebtedness provides clues about the financial strength of an entity, but the user of the financial statements should look to the notes to determine additional information about other and .