geage bonds d. a sinking fund bond. 10. Bonds that may be exchanged for common stock at the option of the bondholders are a. options. b. stock bonds. c, convertible bonds. d. callable bonds. 11.Bonds that are subject to retirement at a stated dollar amount prior to maturity at the option of the issuer are called a. callable bonds. b. early retirement bonds. c. options. d. debentures. If the market interest rate is 14%, a $10,000, 12%, 10-year bond that pays interest annually would sell at an amount a. less than face value. b. equal to face value c. greater than face value. d. that cannot be determined. 12