6. Which of the following is true of demand bonds? a. They give the issuer the right to call the bonds at a preestablished price. b. They give the issuer the right to demand that the bondholders...

6. Which of the following is true of demand bonds?
a. They give the issuer the right to call the bonds at a preestablished price.
b. They give the issuer the right to demand that the bondholders purchase additional bonds at a preestablished price.
c. They give the bondholder the right to demand repayment prior to maturity.
d. They give the bondholder the right of first refusal with respect to any additional bonds sold by the issuer.

7. Demand bonds should be reported as governmental fund liabilities
a. if the government has not entered into a take-out agreement.
b. if prevailing interest rates are higher than the interest rate on the bonds.
c. if prevailing interest rates are lower than the interest rate on the bonds.
d. if the government, by the time it issues its financial statements, has neither refinanced the bonds nor entered into an agreement to do so.