ADM 3340 Chapter Notes - Chapter 14: Debt Settlement, Sinking Fund, Effective Interest Rate

49 views8 pages

Document Summary

Long-term debt: obligations that are not payable within a year or the operating cycle of the business, whichever is longer, and will therefore require probable sacrifices of economic benefits in the future. Carry either a stated or implicit interest rate. Registered bond: bonds that are issued in the owner"s name. To sell a registered bond, the current certificate has to be surrendered. Bearer (coupon bond): a bond that is not recorded in the owner"s name and may be transferred simply from one owner to another. Secured debt: debt that is backed by a pledge of some sort of collateral. Mortgage bonds or notes: debt secured by real estate. Collateral trust bonds or notes: bonds or notes that are secured by assets (often shares and bonds of other corporations) Bonds that are not backed by collateral are unsecured (debenture bonds) Junk bonds: bonds that are unsecured and extremely risky. Term bonds or notes: debt issues that mature on a single date.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions