AFM101 Chapter Notes - Chapter 11: Book Value, Current Liability, Unsecured Debt

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM101
• Professor: Thomas Manning

Document Summary

Non-current liabilities: all of the entity"s obligations not classified as current liabilities. Bond principal: the amount payable at the maturity of the bond. It is also the basis for computing periodic cash interest payments. Par value and face amount: other names for bond principal or the maturity value of a bond. Stated rate: the rate of interest per period specified in the bond contract. Debenture: an unsecured bond; no assets are specifically pledged to guarantee repayment. Callable bonds: may be called for early retirement at the option of the issuer. Convertible bonds: may be converted to other securities of the issuer (usually common shares) Indenture: a bond contract that specifies the legal provisions of a bond issue. Bond certificate: the bond document that each bondholder receives. Trustee: an independent party appointed to represent the bondholders. Coupon rate: the stated rate of interest on bonds.