6. Indicate the circumstances under which an item would be classified as an extraordinary item on the income statement. Unusual in Nature Infrequent in Occurrence a. Yes No b. No Yes c. Yes Yes {1. No No I". From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that a. bond interest is deductible for tax purposes. b. interest must be paid on a periodic basis regardless of earnings. c. income to stockholders may increase as a result of trading on the equity. d. the bondholders do not have voting rights. 8. Bonds that are secured by real estate are termed a. mortgage bonds. b. serial bonds. c. debentures. d. bearer bonds. 9. The contractual interest rate is always stated as a(n) a. monthl},r rate. h. daily rate. c. semiannual rate. (1. annual rate