Match each term with the correct definition.
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a.
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Contingency
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b.
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Discount
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c.
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Premium
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d.
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Capital lease
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e.
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Stated rate
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f.
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Effective rate
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1. Another name for the real rate
2. The annual interest rate paid to the bond holders
3. A lease that is for most of the useful life of the lease resource and which gives the firm control of the resource as if it had been purchased.
4. An existing condition that may result in an economic effect if a future event occurs
5. When the real rate is higher than the stated rate, bonds will sell at this
6. When the real rate is lower than the stated rate, bonds will sell at this