Fundamentals of Corporate Finance Top Predicted Questions and CORRECT Answers 2024

coupon - The stated interest payment made on a bond face value - The principal amount of a bond that is repaid at the end of the term. Also called par value. coupon rate - The annual coupon divided by the face value of a bond. (coupon rate = coupon/faсe value) maturity - The specified date on which the principal amount of a bond is paid. yield to maturity (YTM) - The rate required in the market on a bond. Bond value - Present value of the coupons + Present value of the face amount current yield - A bond's annual coupon divided by its price. indenture - The written agreement between the corporation and the lender detailing the terms of the debt issue. registered form - The form of bond issue in which the registrar of the company records ownership of each bond; payment is made directly to the owner of record bearer form - The form of bond issue in which the bond is issued without record of the owner's name; payment is made to whomever holds the bond debenture - An unsecured debt, usually with a maturity of 10 years or more. note - An unsecured debt, usually with a maturity under 10 years. sinking fund - An account managed by