Retirement of Bonds Payable

What are Retirement of Bonds?

Retirement of bonds is the process of a business repaying the amount of the bond to the investors. Retirement of bonds normally happens when the bond reaches its maturity date, but can happen at an earlier date if the terms of the bond permit. A premium or a discount may arise on the early retirement of bonds.

For example, a business may issue a 5 year bond on which it will pay interest to the investor. At the end of the 5 year period on the maturity date, the business will need to pay the investor the market price for the bond. After the repayment the bond is retired and no longer exists. If the bond terms stipulated that the business can buy back the bonds at any time (usually at a premium), then the bond can be retired early.

For further information on bonds payable see our bonds payable tutorials

Learn a new bookkeeping term

Random bookkeeping terms for you to discover.

Link to this page

Click in the box and paste this retirement of bonds definition link to your site.

Return to the Dictionary

Retirement of Bonds Payable March 23rd, 2016Team

You May Also Like

Related pages

whats a fixed costaccounting bank reconciliation templatecontribution margin and fixed costsformula for cost of goods manufactureddepreciation formulasdefine installment paymentdoubling period formulatemplates for spreadsheetsdebits and credits cheat sheetaccounting cycle tutorialwhats petty cashpresent value compounded continuouslyaccruals vs cashsample ledger sheetfuture value annuity due formulaintercompany loan accounting treatmentmargin formula in excelexample statement of retained earningssundry debtors in balance sheetdebit and credit meaning with exampleequation quizhow is inventory turnover calculatedworking capital turnover ratio interpretationdays sales receivables formulastock turnover rate formulaperpetual inventory system examplenormal debit balanceaccounting entry for unearned revenuestandard costing journal entriescash book accounting exampleinvoiced definitionpetty cash log excelperiodic interest rate calculatorfinished goods inventory formulareversal of accrued expensescalculating inventory turnover ratiosales mix calculationhow to calculate monthly interest rate in exceldouble declining depreciation equationfactoring receivables definitionformula to calculate markup percentagesample cash receipts journalreducing balance depreciation formulaaccrued revenue adjusting entryhow to extract a trial balanceunrealized loss journal entrythe present value of a perpetuityvariable expense per unit formulaaverage accounting rate of returnreceivable discountingamortization on income statementasset register template excel freewhat is interest suspense accountpresent value of annuitycommon stockholders equity formulawhat is included in manufacturing overheadoverstating ending inventorydepreciation and accumulated depreciation journal entrynon profit organization templatespurchase method of accounting exampleaccounting equitionprofitability ratios listaccounting rate of return calculationpv of annuity due formulathe accounting for cash discounts and trade discounts arecoupon bonds examplesservices rendered accounting entryphysical inventory count sheet excelvertical analysis for income statementpresent value of future cash flows excelifrs bad debt provisionaccounting general journal templatecalculate lifo reserve