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Chapter 9

Across
Bonds that all mature at the same time for a particular issue.
Using borrowed funds to increase the return on equity. Successful use of leverage means earning more income on borrowed money than the related interest expense, thereby increasing the earnings for the owners of the business. Also called trading on the equity.
Interest rate that determines the amount of cash interest the borrower pays and the investor receives each year.
Groups of debt securities issued to multiple lenders called bondholders.
Down
Excess of a bond's issue price over its face (par) value.
Bonds that mature in installments over a period of time.
Interest rate that investors demand for loaning their money. Also called effective interest rate.
Excess of a bond's face (par) value over its issue price.
Bonds or notes that may be converted into the issuing company's common stock at the investor's option.