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1. Secured bonds are bonds that a. are in the possession of a bank. b. are registered in the name of the owner. c. have
1. Secured bonds are bonds that a. are in the possession of a bank. b. are registered in the name of the owner. c. have specific assets of the issuer pledged as collateral. d. have detachable interest coupons. Which of the following is not an advantage of issuing bonds instead of common stock? a. Stockholder control is not affected. b. Earnings per share on common stock may be lower. c. Income to common shareholders may increase. d. Tax savings result. 1. 2. 3. Bonds that may be exchanged for common stock at the option of the bondholders are called a. options. b. stock bonds. c. convertible bonds. d. callable bonds. - 4. A bond secured by specific assets set aside to redeem the bonds is called a a. convertible bond. b. sinking fund bond. c. mortgage bond. d. secured bond. Companies with good credit ratings use bonds extensively. a. callable bonds. b. convertible bonds. c. mortgage bonds. d. debenture bonds. 5
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