Bonds payable are a means of dividing a very large,long-term liability among many creditors,some of whom may participate in the loan only for a short period of time.

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Bonds payable are typically sold to a large number of investors, who are willing to lend money to a company for an extended period of time in exchange for regular interest payments. This allows the company to spread out the repayment of the loan over a longer period of time, rather than having to pay back a single creditor in a lump sum. Investors may buy and sell bonds on secondary markets, which means that some investors may only hold the bond for a short period of time before selling it to another investor.

Bonds Payable Are a Means of Dividing a Very Large,long-Term