Key terms from Chapter 10: Reporting and also Examining Long-Term Liabilities from Financial Accounting, Information for Decisions by John J. Wild. McGraw-Hill, 2005.

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Series of equal payments at equal intervals.
Bearer BondsBonds made payable to whoever holds them (the bearer); likewise referred to as unregistered bonds.
BondWritten promise to pay the bond"s par (or face) worth and also interest at a stated contract rate; frequently issued in denomicountries of $1,000.
Bond CertificateDocument containing bond specifics such as issuer"s name, bond par value, contract interemainder price, and maturity day.
Bond IndentureContract in between the bond issuer and also the bondholders; identifies the parties" legal rights and responsibilities.
Callable BondsBonds that give the issuer the alternative to retire them at a stated amount before maturity.
Capital LeasesLong-term leases in which the lessor transfers substantially all danger and rewards of ownership to the lescheck out.
Carrying Value of BondsNet amount at which bonds are reported on the balance sheet; equals the par worth of the bonds much less any type of unamortized discount or plus any kind of unamortized premium; additionally dubbed carrying amount or book value.
Contract RateInterest rate specified in a bond indenture (or note); multiplied by the par worth to identify the interemainder phelp each period; likewise referred to as coupon rate, proclaimed price, or nominal price.
Convertible BondsBonds that bondholders have the right to exadjust for a collection variety of the issuer"s shares.
Coupon BondsBonds via interemainder coupons attached to their certificates; bondholders detach coupons as soon as they mature and present them to a bank or broker for repertoire.
Discount on Bonds PayableDifference in between a bond"s par value and its lower issue price or carrying value; occurs as soon as the contract rate is much less than the market price.
Effective Interest MethodAllocates interemainder cost over the bond life to yield a constant rate of interest; interest price for a duration is uncovered by multiplying the balance of the liability at the beginning of the period by the bond market price at issuance; likewise called interest technique.
Installment NoteLicapability requiring a collection of routine payments to the lender.
LeaseContract specifying the rental of home.
Market RateInterest price borrowers are willing to pay and also lenders are willing to accept for a certain debt agreement provided its risk level.
MortgageLegal loan agreement that protects a lender by providing the lender the right to be paid from the cash proceeds from the sale of a borrower"s assets figured out in the mortgage.
Off-Balance-Sheet FinancingAcquisition of assets by agreeing to liabilities not reported on the balance sheet.
Operating LeasesShort-term (or cancelable) leases in which the lessor retains threats and rewards of ownership.
Par Value of a BondAmount the bond issuer agrees to pay at maturity and also the amount on which cash interemainder payments are based; additionally dubbed face amount or challenge worth.
Pension PlanContractual agreement in between an employer and also its employees for the employer to carry out benefits to employees after they retire; expensed as soon as incurred.
Pledged Assets to Secured LiabilitiesRatio of the book worth of a company"s pledged assets to the book worth of its secured liabilities.
Premium on BondsDifference in between a bond"s par worth and its better transporting value; occurs when the contract rate is better than the industry rate; additionally called bond premium.
Registered BondsBonds owned by investors whose names and also addresses are recorded by the issuer; interest payments are made to the registered owners.
Secured BondsBonds that have actually specific assets of the issuer pledged as collateral.
Serial BondsBonds consisting of separate quantities that mature at different dates.
Sinking Fund BondsBonds that need the issuer to make deposits to a sepaprice account; bondholders are repaid at maturity from that account.
Straight-Line MethodMethod allocating an equal amount of bond interemainder price to each duration in the life of bonds.
Term BondsBonds booked for payment (maturity) at a solitary mentioned date.

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Unsecured BondsBonds backed just by the issuer"s crmodify standing; virtually always riskier than secured bonds; also called debentures.