2 . H 7 . G 12 . M
3 . E 8 . F 13 . L
4 . A 9 . C 14 . N
5 . K 10 . I
PART IV — MATCHING 3 points each ( 30 points ) Match the items below by entering the appropriate code letter in the space provided . A . Serial bonds F . Current ratio B . Debenture bonds G . Straight-line method of amortization C . Bond indenture H . Times interest earned ratio D . Market interest rate I . Callable bonds E . Discount on bonds payable J . Maturity date ____ 1 . Bonds subject to retirement at a stated dollar amount prior to maturity . ____ 2 . A legal document that sets forth the terms of a bond issue . ____ 3 . Bonds that mature in installments . ____ 4 . A measure of a company ’ s short-term liquidity . ____ 5 . The time that the final payment on a bond is due from the bond issuer . ____ 6 . A measure of a company ’ s solvency . ____ 7 . The rate investors demand for loaning funds to a corporation . ____ 8 . Unsecured bonds issued against the general credit of the borrower . ____ 9 . Occurs when the contractual rate of
interest is less than the market rate of interest . ____ 10 . Produces a periodic interest expense that is the same amount each interest period .
1 . I 6 . H 2 . C 7 . D 3 . A 8 . B