How are bonds and notes the same? How do they differ?

Q: What is indexed bond?

A: It is a bond with a interest rate which is connected to a index, for example, the bond market…

Q: Why does the entire issue price of convertible bonds is recorded as debt?

A: A convertible bond is a type of bond that the holder can convert these bonds into a specified number…

Q: How are bonds amortized?

A: Bond Amortization: Over the course of the bond's existence, the principal (face value) of the loan…

Q: Who Issues Bonds?

A: A bond is a fixed income instrument. The bond holders are referred to as the debt holders or…

Q: Why consider bonds?

A: A bond can be described as the security or asset which provides secure income to the investor…

Q: How does the payment of a bank loan’s principal and a bond’s par value differ?

A: A bank loan is a common method and process for a business to acquire money and capital for various…

Q: What is the difference between general obligation bonds and revenue bonds?

A: General Obligation Bonds(GOs) are bonds that are backed by the "full faith and credit" of the issuer…

Q: What are Bond prices and interest rates? And what is the relationship between them?

A: Bond is a debt instrument which provides regular periodic interest income to an investor. Generally,…

Q: How can we determine the amount of debt financing through bonds?

A: When the firm raises funds through the sale of its long-term or short-term debt instruments then…

Q: What are debenture bonds used for?

A: Debenture bonds: Debenture is a debt instrument which are issued to raise the capital. The debenture…

Q: how to interpret the process of bond issuance?

A: Corporate Bond Issue: Corporate bond issuance is one method of raising capital for a company. A bond…

Q: Would accounting differ if the debt were designated as notes rather than bonds?

A: A bond indenture is a paper certificate or a document which describes specific promises made to the…

Q: How is periodic interest determined for outstanding liabilities? For outstanding receivables? How…

A:

Q: What is the relationship between bond prices and interest rates?

A: There is a inverse relation between bond prices and interest rates.  As interest rates increases,…

Q: What are income bonds and indexed bonds?

A: The income bond is a type of debt instrument wherein the borrower is relied upon to pay just the par…

Q: what is the difference between bonds payable and accounts payable? explain your answer?

A: Bond payable and account payable both are liabilities of the company , which is to be paid in future…

Q: How are bonds reported when classified as trading securities?

A: Trading securities are those securities which are purchased or sold for trading purpose i.e. to make…

Q: Which are the main types of bonds issued by two major issuers namely?

A: Corporate bonds It is a bond issued by the company for raising the capital and sold to an investor.…

Q: What is the meaning of contemporary bonds

A: If enough funds are not available with the firm, in that case it can have funds from outside. These…

Q: Is it possible that a bond is reported in multiple places on the balance sheet? If yes, explain.

A: In finance, a bond is an instrument or document of indebtedness of the bond issuer to the holders.…

Q: When does a discount on bonds payable occur?

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: What amount of interest is expensed on a bond interest payment?

A: Whenever an interest payment is made on bonds, amount of interest expensed : Interest expensed =…

Q: What loss should Mirada record on the redemption of bonds?

A: Bonds are the financial instruments which shows the amount of ownership of debt in a business…

Q: Where and how are bonds proceeds recorded?  Bond interest and bond principal payments?

A: Bond is a financial instrument issued by the company to raise funds for the growth and development…

Q: What are bonds classified as?

A: Issue of bonds is a source of funds of a company. They are an acknowledgement of debt taken by the…

Q: What is outstanding bond?

A: Bond: It can be defined as the loan given to a business or any other organization by the investor…

Q: What are convertible bonds? Which recording method is used?

A: Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by companies,…

Q: What are the different types of Bonds?

A: A corporate bond is a type of debt security that is issued by a firm and sold to investors. The…

Q: credit to Premium on Bonds Payable?

A: Premium on Bonds Payable is the amount at which it is issued in excess of par value. Premium on…

Q: What are junk bonds?

A: Answer: A junk bond is a high risk and high yield bond often considered as unsecured bond that is…

Q: How the bonds market operates?

A: Bond markets are categorized in to two primary market and secondary market. Primary market is the…

Q: What are the different factors that affect the interest rates set by issuers of debt securities?

A: Debt securities seem to be financial assets which guarantee their holders interest payments in the…

Q: Which costs are included in bond issuance costs? How are they recorded?

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: What are the reasons for issuing convertible bonds rather than straight debt?

A: Convertible bonds: Convertible bonds are a kind of bonds that can be easily converted into…

Q: What is the main difference between notes payable and bonds payable?

A: Following are the differences between Bond and note payable.  Bond are issued to raise long term…

Q: Which of the following statements regarding bonds and their terms is FALSE?

A: All options given are correct  except  The yield to maturity of a bond is the discount rate that…

Q: What are the Pro's and con's of bonds?

A: The bonds are one of the most liquid and active financial instruments in the world. Bonds are…

Q: What is the difference between annuities and corporate bonds?

A: An annuity is a lump sum or a series of payments paid to someone on a periodic basis. In other…

Q: What are redeemable and irredeemable bonds? Explain in single sentence please

A: Redeemable bonds are the bonds which are redeemed after fixed no. of years.

Q: How do convertible bonds help reduce agencycosts?

A:

Q: What are the methods of determining interest on bonds?

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: What is the difference between a mortgage bond and a convertible bond?

A: Mortgage bond: A mortgage bond (also known as a secured bond) is a corporate bond that is secured by…