Which of the following statements regarding bonds payable is true?
A)Generally,bonds are issued in denominations of $100.
B)When an issuing company's bonds are traded in the "secondary" market,the company will receive part of the proceeds when the bonds are sold from the first purchaser to the second purchaser.
C)A debenture bond is backed by specific assets of the issuing company.
D)Most bonds are term bonds,meaning that the entire principal amount will mature on a single date.

Question

Quizplus · Accepted Answer

Most bonds are indeed term bonds, which means they have a set maturity date when the principal amount is due to be paid back in full to the bondholders. This contrasts with serial bonds, which mature at several dates, and other types of bonds like debentures, which are not backed by specific assets but rather by the issuer's creditworthiness.

Which of the Following Statements Regarding Bonds Payable Is True