Chapter 11 - Bonds Payable Textbook Questions 1. What is the main difference between the following items? a. Bonds and Notes Payable b. Bonds and Common Stock 2. Define the following terms: a. Bond Indenture b. Term Bonds c. Serial Bonds d. Convertible Bonds e. Callable Bonds f. Debenture Bonds 3. If bonds are sold at a premium, what is the impact on bond interest expense (increase or decrease)? 4. If bonds are sold at a discount, what is the impact on bond interest expense (increase or decrease)? 5. How do the following items impact Bonds Payable on the Balance Sheet? a. Discount on Bonds Payable b. Premium on Bonds Payable