Bonds Payable
Bonds payable is a debt instrument. The issuance of bonds has an issuer, the debtor, and a holder, the creditor. The bonds certificate represents a promise to pay the sum of money at the maturity date. Moreover, the periodic interest is on the maturity amount (face value) at a specific rate.
Normally, bonds are issued on several certificates. Each certificate with a P1,000 face value. The interest payment is usually semi-annually or annually. A bond indenture is a contract or legal document that contains the agreement of the issuer and the bondholder. Bond indenture includes the face amount, the stated interest rate, and the date of periodic interest payment. Moreover, the date of maturity.
-RELATED CONTENT-
Customer Loyalty Program - • Customer Loyalty Program
Notes Payable - • How to account Notes Payable
Warranty Liability - • Warranty Liability
Debit and Credit - • Why should I learn Debit and Credit as an ...