.The more debt securities a corporation issues, the greater the risk of default.
32.If a pension under a defined benefit plan is not backed by a fund sufficient to pay it, the company must recognize the unfunded portion as a liability.
33.Bondholders are creditors of the issuing corporation.
34.Secured bonds are also known as debentures.
35.Unamortized Bond Premium is added to Bonds Payable on the balance sheet.
36.Face interest rate is another term for market interest rate.
37.If the face interest rate at the date of bond issuance exceeds the market interest rate, the bond will probably be sold at a discount.
38.The call feature of bonds is useful if a company wants to retire a bond issue.
39.The call price of bonds is usually below face value.
40.The callable feature of a bond can be exercised by the bondholder.
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