If an issuer sells bonds at a date other than an interest payment date: This means the bonds sell at a premium. This means the bonds sell at a discount. The issuing company will report a loss on the sale of the bonds. The issuing company will report a gain on the sale of the bonds. The buyers normally pay the issuer the purchase price plus any interest accrued since the prior interest payment date. Promissory notes that require the issuer to make a series of payments consisting of both interest and principle are: Debentures. Discounted notes. Installment notes. Indentures. Investment notes. Secured bonds Are called debentures. Have specific assets of the issuing company pledged as collateral. Are backed by the issuer's bank. Are subordinated to those of other unsecured liabilities. Are the same as sinking fund bonds