1. Listed below are common terms associated with bonds: Bond certificate Bond issue Bond indenture Unsecured bonds Debenture bonds Secured bonds Term bonds Serial
bonds Registered bonds Coupon bonds Callable bonds Convertible bonds Face interest rate Market interest rate Effective interest rate Bond premium Bond discount 1. For
each of the following statements, identify the term with which it is associated. (If two statements apply, choose the category with which it is most closely
associated.) 1. Occurs when bonds are sold at more than face value SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm
bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem
1 2. Rate of interest that will vary depending on economic conditions SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured
bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond
discountItem 2 3. Bonds that may be exchanged for common stock SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm
bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem
3 4. Bonds that are not registered SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered
bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 4 5. A bond issue in which
all bonds are due on the same date SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered
bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 5 6. Occurs when bonds are
sold at less than face value SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon
bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 6 7. Rate of interest that will be
paid regardless of market conditions SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered
bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 7 8. Bonds that may be
retired at management’s option SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon
bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 8 9. A document that is evidence of
a company’s debt SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon
bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 9 10. Same as market rate of interest
SelectBond certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible
bondsFace interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 10 11. Bonds for which the company knows who owns them SelectBond
certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace
interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 11 12. A bond issue for which bonds are due at different dates SelectBond
certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace
interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 12 13. The total value of bonds issued at one time SelectBond
certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace
interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 13 14. Bonds whose payment involves a pledge of certain assets SelectBond
certificateBond issueBond indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace
interest rateMarket interest rateEffective interest rateBond premiumBond discountItem 14 15. Same as debenture bonds SelectBond certificateBond issueBond
indentureUnsecured bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest
rateEffective interest rateBond premiumBond discountItem 15 16. Contains the terms of the bond issue SelectBond certificateBond issueBond indentureUnsecured
bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective
interest rateBond premiumBond discountItem 16 17. Bonds issued on the general credit of the company SelectBond certificateBond issueBond indentureUnsecured
bondsDebenture bondsSecured bondsTerm bondsSerial bondsRegistered bondsCoupon bondsCallable bondsConvertible bondsFace interest rateMarket interest rateEffective
interest rateBond premiumBond discountItem 17 2. Preferred and Common Stock Dividends and Dividend Yield Avaya Corporation had the following stock outstanding from
2011 through 2014: Preferred stock: $100 par value, 8 percent cumulative, 5,000 shares authorized, issued, and outstanding Common stock: $10 par value, 100,000 shares
authorized, issued, and outstanding The company paid $30,000, $30,000, $94,000, and $130,000 in dividends during 2011, 2012, 2013, and 2014, respectively. The market
price per common share was $7.25 and $8.00 per share at the end of years 2013 and 2014, respectively. 1. Determine the dividends per share and the total dividends paid
to common stockholders and preferred stockholders in 2011, 2012, 2013, and 2014. If required, round your answers to the nearest cent. If an amount is zero, enter “0”.
Cumulative Preferred Stock Dividends Per Share Common Stock Dividends Per Share Total Dividends Allocated 2011 $ $ $ 2012 $ $ $ 2013
$ $ $ 2014 $ $ $ 2. Perform the same computations, with the assumption that the preferred stock was noncumulative. If required, round your
answers to the nearest cent. If an amount is zero, enter “0”. Noncumulative Preferred Stock Dividends Per Share Common Stock Dividends Per Share Total Dividends
Allocated 2011 $ $ $ 2012 $ $ $ 2013 $ $ $ 2014 $ $ $ 3. Calculate the 2013 and 2014 dividend yield for common
stock, using the dividends per share computed in requirement 2. Round your answers to one decimal place. Dividend Yield 2013 % 2014 %
