Nature of Bonds
An Interest Bearing Note
What is a Bond?
Bond where the maturity dates are spread out over several dates.
What is a Serial Bond?
A document that authorizes the issuance of a specified number of shares of stock.
What is the state charter?
Designed to compare two or more periods of financial statement data within a company
What are comparative financial statements?
The price different on a bond that is sold for a price lower than the market rate.
What is a bond discount?
A contract between the corporation issuing the bond and the bondholder.
What is a Bond Indenture?
Bond that a corporation reserves the right to recall before the maturity date.
What is a callable bond?
The owners of a corporation.
What are Shareholders?
the analysis of increases or decreases in the amount and percentages of comparative financial statements using the oldest, or earliest year as the base year
What is horizontal analysis?
The price different on a bond that is sold for a price higher than the market rate.
What is a bond premium?
Another name for market interest rate.
What is the effective interest rate?
Bonds that give the issuer the right to convert to to stock if desired.
What is a convertible bond?
Limited to the value of shares owned.
What is shareholder liability?
statements that display only component percentages when analyzing companies.
What are common-sized financial statements?
Monies paid into the company by the stockholders.
What is paid-in-capital?
The face amount of a bond.
What is the Principal?
Bond issue where all bonds of an issue mature at the same time.
What are term bonds?
Distribution of net income to shareholders
What are dividends?
Analysis in which all components of an income statement are expressed as a percentage of sales.
What is vertical analysis?
Money produced as income for a corporation that is retained after paying dividends.
What is retained earnings?
The face value of most bond.
What is $1000?
A bond issued by a city, county, or state.
What is a municipal Bond?
Stock that a corporation repurchases from the open market.
What is treasury stock?
The expression of a financial statement item as a percentage of another financial statement item.
What is a ratio?
The monetary value assigned to each share of stock within the corporate charter.
What is par value?