BU127 Chapter Notes - Chapter 11: Finance Lease, Operating Lease, Effective Interest Rate
6
BU127 Full Course Notes
Verified Note
6 documents
Document Summary
Chapter 11 textbook: reporting and interpreting non-current liabilities: Characteristics of long term notes and bonds payable: Bond principal is the amount payable at the maturity of the bond and the basis for computing periodic cash interest payments. Par value and face amount are other name for bond principal or the maturity value of a bond. The stated rate is the rate of interest per period specified in the bond contract. A debenture is an unsecured bond where no assets are specifically pledged to guarantee repayment. Callable bonds may be called for early retirement at the option of the issuer. Convertible bonds may be converted to other securities of the issuer. An indenture is a bond contract that specifies the legal provisions of a bond issue. A bond certificate is the bond document that each bondholder receives. A trustee is an independent part appointed to represent the bondholders. The coupon rate is the stated rate of interest on bonds.
