Which of the following statements is not correct？______.

A bond issue is a technique for subdividing a very large loan into many small, transferable units.
Bond interest payments are contractual obligations, whereas the board of directors determines whether or not dividends will be paid.
C. As interest rates rise, the market prices of bonds rise; as interest rates fall, bond prices tend to fall.
D. Bond interest payments are deductible in determining income subject to income taxed, whereas dividends paid to stockholders are not deductible.