## 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.

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

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 %