Ch 10 Notes - the maturity date ← Coupon Vs...

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Chapter 10 Notes 02/04/2007 09:58:00 Chapter 10: Accounting For Long-Term Debt Characteristics of Corporate Bonds - $1,000 Denomination—Face Value “Par” - Interest “usually” paid every 6 months. - Maturity Date Security of Bonds - Secured Bonds Bonds secured by specific identifiable assets. A common type of secured bond is a “Mortgage Bond”. - Unsecured Bonds Bonds issued on the general credit of the organization. Also known as Debenture Bonds. Special Features of Bonds - Convertible Bonds Are liabilities that can be exchanged at the option of the bondholder for common stock or some other specified ownership interest. - Callable Bonds Allow the issuing company to redeem (pay off) the bond debt before
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Unformatted text preview: the maturity date. ←- Coupon Vs. Registered (Not in book) • Coupon Bonds o Also known as Bearor Bonds. o Don’t have your name or names on them. o The Coupon Rate is always based on $1,000. • Registered Bonds o Do have your names on them. ← ← Example of a Coupon Bond ← 5 Year Bond 12% ← You Get $120/Annually ← $60 Every 6 Months ← ← More Information On Bonds… ←- Anything selling at a Premium is selling for more than $1,000. ←- Anything selling below $100 is known as a Discount. ←- Anything selling above $100 is known as a Premium. ← ← ← ← ← ← ← ← ← ← ← ← 02/04/2007 09:58:00 ← 02/04/2007 09:58:00 ←...
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This note was uploaded on 10/03/2011 for the course BUS 222 taught by Professor Jennings during the Spring '07 term at University of Maine Orono .

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Ch 10 Notes - the maturity date ← Coupon Vs...

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