leases are short-term or cancelable leases in which the lessor retains the 16. risks and rewards of ownership. leases are long-term or noncancelable leases by which the lessor transfers substantially all risks and rewards of ownership to the lessee. 18. A the employer to provide benefits to employees after they retire from the company 19. The issue price of a bond is found by computing the present value of the bond's cash payments, discounted is a contractual agreement between an employer and its employees for at the rate of interest at the time of issuance. 20. When the bond contract rate of interest is below the market rate of interest for that bond, the bond sells at a 21. When the bond contract rate of interest is equal to the market rate of interest for similar type of bonds, the bonds will sell at