1.Each bondholder may vote for the board of directors in proportion to the number of bonds held.
2.Bond interest paid by a corporation is an expense, whereas dividends paid are not an expense of the corporation.
3.Registered bonds are bonds that are delivered to owners by U.S. registered mail service.
4.A debenture bond is an unsecured bond which is issued against the general credit of the borrower.
5.Bonds are a form of interest-bearing notes payable.
6.Neither corporate bond interest nor dividends are deductible for tax purposes.
7.A 10% stock dividend is the equivalent of a $1,000 par value bond paying annual interest of 10%.
8.The holder of a convertible bond can convert an interest payment received into a cash dividend paid on common stock if the dividend is greater than the interest payment.
9.The board of directors may authorize more bonds than are issued.
10.The contractual interest rate is always equal to the market interest rate on the date that bonds are issued.
