A bond payable is a type of long-term debt instrument issued by a corporation to raise capital. It typically has a stated interest rate and a maturity date on which the corporation must repay the bondholders the face value of the bond. The terms of the bond are formalized in a bond certificate, which contains information about the interest rate, maturity date, and other relevant details.

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A Bond Payable

Question 8

Multiple Choice

A bond payable:

A) is special type of long-term interest-bearing note payable issued by a corporation to raise capital.
B) is the annual interest rate based on face value.
C) is the amount to be paid on the maturity date of a bond.
D) is the information on the bond certificate written by the corporation in a formal agreement.

Correct Answer: