Answered

Welcome to Westonci.ca, the ultimate question and answer platform. Get expert answers to your questions quickly and accurately. Join our platform to connect with experts ready to provide accurate answers to your questions in various fields. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

A(n) on bonds payable occurs when a company issues bonds with a contract rate less than the market rate.

Sagot :

temdan2001

Answer:

A discount on bonds payable: Occurs when a company issues bonds with a contract rate less than the market rate.

Explanation:

A discount on bonds payable: Occurs when a company issues bonds with a contract rate less than the market rate

Premium on bonds payable - occurs when a company issues bonds for an amount greater than their face or maturity amount. This causes the bonds to have a contract interest rate that is higher than the market interest rate for similar bonds.

On the other hand, Discount on bonds payable - occurs when a company issues bonds for an amount lesser than their face or maturity amount. This causes the bonds to have a contract interest rate that is lesser than the market interest rate for similar bonds.

We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.