Bonds payable that are redeemed by the issuer
A)typically pay far less interest than the market rate of interest.
B)are considered unsecured.
C)have no market value.
D)are repurchased or retired.

Question

Quizplus · Accepted Answer

Bonds payable that are redeemed by the issuer are either repurchased or retired. This means that the issuer buys back the bonds from the investors, either before or at the maturity date, at a price determined by the bond's face value and any applicable premium or discount. Redeemed bonds may have a market value, which is the price that investors may buy or sell them for in the secondary market. The interest paid by redeemed bonds may be either higher or lower than the market rate, depending on the terms of the bond contract and the prevailing interest rates. The security of redeemed bonds may vary, depending on whether they are secured or unsecured bonds.

Bonds Payable That Are Redeemed by the Issuer