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Chapter 14: Bonds and Long-Term Notes

Horizontales
Interest rate assumed or understood in a debt agreement though not expressly stated.
Incurred for legal and accounting fees, printing costs, and registration and underwriting fees.
A method that allocates bond discounts or premiums equally each period.
To retire debt prior to maturity date.
Deciding upon an appropriate interest rate.
Bond that the issuing company can buy back from bondholders.
A method where market rate interest is multiplied by the outstanding balance of the debt.
Bond that can be exchanged into shares of stock.
A structured way to retire bonds on a piecemeal basis.
Bond issued for more than face amount.
Bond that pays no interest.
Document with promises made to bondholders.
Verticales
Debt securities sold to a single investor.
Occurs when the original terms of debt agreement are changed.
Bond where investor is not entitled to receive any liquidation payments until other specified debt issues are satisfied.
Gives a bondholder the ability purchase stated number of common shares.
Bond backed by a lien on specified real estate owned by the issuer.
A type of note in which payments include both interest and principal.
Bond backed by "full faith and credit" of the issuing corporation.
Bond where the owner's name is listed with the issuing company.
Bond that is not registered and has elements to clip and redeem based upon indenture.
Bond issued for less than face amount.