annuitiesStreams of level (i.e., the same amount each period) payments occurring on regular intervals
bonds payableAn obligation divided into transferable units requiring the issuer to make periodic interest payments and an eventual repayment of the face amount
callable bondA bond that provides the issuer an option to reacquire the bonds before scheduled maturity at a preset price
commitmentsPromises to engage in some future action; not necessarily creating a recordable accounting liability but potentially necessitating enhanced disclosure
compound interestInterest calculations that provide for periodic inclusion of accumulated interest into the base on which interest is calculated; "interest on the interest"
convertible bondA bond that may be converted by the holder into stock of the issuing company
coupon bondA bond that has detachable coupons that are exchanged for interest payments; historically popular but falling into disuse
debenture bondA bond that lacks specific collateral; payment is only assured by the general faith and creditworthiness of the issuer
effective-interest amortizationA theoretically preferable method for amortizing premiums and discounts on bonds; interest expense is a constant percentage of the bonds ever-changing carrying value
future valueThe amount to which an interest-earning amount is expected to grow over a stipulated time period at a given interest rate
junk bondA bond that is issued by a company of low credit worthiness, and entails substantial risk of nonpayment; generally offers a high interest rate to compensate for the high risk
A bond that cannot be paid off before scheduled maturity
nonrefundable bondA bond that cannot be paid off with the proceeds of a new debt issue
present valueThe calculated value today of an amount to be received in the future, based upon an assumed interest rate (the reciprocal of future value)
registered bondA bond for which ownership records are maintained, and interest is paid to the registered owner
secured bondA bond that provides specific assets as collateral to help assure the payment stream
serial bondA bond issue that has multiple repayment dates, rather than the entire issue maturing at one fixed maturity date
simple interestInterest calculations that do not provide for periodic inclusion of accumulated interest into the base on which interest is calculated
sinking fund bondA bond issue that requires periodic setting aside of monies into a separate fund to provide for eventual repayment of the debt at maturity
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