Match the following terms relating to bonds with the appropriate statement. The choices are bond premium, amortization, carrying value of bond, face value of bond, bond proceeds, bond discount, stated rate, or market rate.
principal portion of the debt
interest rate the bondholder will receive in cash; coupon rate
interest rate the bondholder will earn; effective rate; yield
Occurs when the market rate of interest exceeds the stated rate on date of issuance
occurs when the stated rate of interest exceeds the market rate on date of issuance
face value of bond plus or minus the unamortized premiumdiscount
amount of cash received on the date of issuance by the company issuing the bonds
regular adjustment of the bond discountpremium to interest over the life of the bonds
