E$11\mathrm{.}1($LO $1)$ Liane Hansen has prepared the following list of statements about bonds.

Bonds are a form of interest$-$bearing notes payable.

When seeking long$-$term financing, an advantage of issuing bonds over issuing ordinary shares is that shareholder control is not affected.

When seeking long$-$term financing, an advantage of issuing ordinary shares over issuing bonds is that tax savings result.

Secured bonds have specific assets of the issuer pledged as collateral for the bonds.

Secured bonds are also known as debenture bonds.

A conversion feature may be added to bonds to make them more attractive to bond buyers.

The rate used to determine the amount of cash interest the borrower pays is called the stated rate.

Bond prices are usually quoted as a percentage of the face value of the bond.

The present value of a bond is the value at which it should sell in the marketplace.

Instructions

Wentify each statement as true or false. If false, indicate how to correct the statement.