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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.

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