13) A bond traded at 102% means that: A) The bond pays 2.5% interest. B) The market rate of interest is 2% % above the contract rate. C) The bond traded at 102.5% of its par value. D) The bonds were retired at $1,025 each. E) The market rate of interest is 2.5% 14) Bonds owned by investors whose names and addresses are recorded by the issuing company, and for which interest payments are made with checks or cash transfers to the bondholders, are called: A) Coupon bonds. B) Bearer bonds. C) Callable bonds. D) Serial bonds. E) Registered bonds. 15) Secured bonds: A) Are subordinated to those of other unsecured liabilities. B) Are the same as sinking fund bonds. C) Are called debentures. D) Are backed by the issuer's bank. E) Have specific assets of the issuing company pledged as collateral. 16) Retained earnings: A) Can only be appropriated by setting aside a cash fund. B) Generally consists of a company's cumulative net income less any net losses and dividends declared since its inception. C) Represents the amount shareholders are guaranteed to receive upon company liquidation. D) Are never adjusted for anything other than net income or dividends. E) Represent an amount of cash available to pay shareholders. 17) The number of shares that a corporation's charter allows it to sell is referred to as: A) Issued stock. B) Authorized stock. C) Preferred stock. D) Common stock. E) Outstanding stock. 18) Par value of a stock refers to the: A) Dividend value of the stock. 13) 14) 15) 16) 17) 18) B) Issue price of the stock. C) Maximum selling price of the stock. D) Market value of the stock on the date of the financial statements. E) Value assigned per share by the corporate charter. 19) The right of common shareholders to purchase their proportional share of any common 19) stock later issued by the corporation is called a: A) Proxy right. B) Preemptive right.