In the Case of a Bond,the Only Contractual Factor Is

question 80

True/False

In the case of a bond,the only contractual factor is the amount of interest payments,since beginning and ending bond prices are determined by market forces.

---

Definitions:

Straight-line Amortization

An accounting method of incrementally reducing the cost value of an intangible asset over its useful life.

Interest Payment

The payment a borrower makes to a lender as compensation for the use of borrowed money.

Journal Entry

A journal entry is a record of a financial transaction in the accounting records, showing the accounts and amounts to be debited and credited.

Discount on Bonds Payable

The difference between the face value of a bond and the price for which it sells when the bond's market value is lower than its face value.