If the interest rate on bonds is higher than the current market rate, they will sell at a discount. a premium. face value. maturity value. Bonds secured by a mortgage on corporate property are called mortgage bonds. property bonds. investment bonds. adjustment bonds. The bonds payable account would be classified as a(n) O current liability. adjunct-liability. contra-liability. long-term liability. The premium on bonds payable account would be classified as a(n) current liability. adjunct-liability. contra-liability. noncurrent liability. Bonds issued in a series so that a specified amount of the bond matures each year are called term bonds. serial bonds. convertible bonds. callable bonds. Bonds issued with a provision that they may be called for redemption before the date of maturity are known as convertible bonds. term bonds. debenture bonds. callable bonds. If the rate of interest on bonds is lower that the current market rate, the bonds will sell at a discount. a premium. face value. maturity value. Bonds issued giving the holder the option of exchanging the bonds for capital Stock of the corporation are called term bonds. convertible bonds. capital stock bonds. callable bonds. Term bonds are bonds that all have the same maturity date. bonds issued in a series so that a specified amount of the bonds matures each year. bonds that give the issuing corporation the option of calling the bonds for redemption before the maturity date. bonds that give the holder the option of exchanging the bonds for capital stock of the corporation. The sale and issuance of $400,000, 8% bonds with a market rate of 8% would involve debiting Cash for 32000 368000 400000 432000 Bondholders have which of the following relationships with a corporation? They are creditors. They are owners. They become members of the board. They are silent managers. If bonds were originally sold at face value and the corporation pays more than the face amount when the bonds are redeemed, there is a loss. gain. Opremium. discount. If bonds were being issued with a stated rate of 8% and the market rate is 9%, the bonds would most likely sell at which of the following? 108 100 95 80 Two of the main factors in determining the price at which bonds will sell are the contract rate and the coupon rate. the contract rate and the stated rate. the market rate and the discount rate. the stated rate and the market rate. Bonds issued at the same time so that they all have the same maturity date are called O term bonds. serial bonds. convertible bonds. callable bonds