Bond

Debt-to-Equity Ratio

Discount on Bonds Payable

Contract Rate

Lease

Market Interest Rate

Mortgage

Par Value  of a Bond

Premium on a Bond

Secured Bond

When the market rate is higher than a bond's stated (or contracted) rate, the bond will trade at a discount relative to its par value.

When the market rate is lower than a bond's stated (or contracted) rate, the bond will trade at a premium over its par value.

When a bond is issued, the issuing company records a credit to Bonds Payable.

When a bond matures, the issuing company will record a debit to Bonds Payable.

When interest on a bond is paid, the Interest Expense account is debited.

When risk for a company increases, it's bond price will decrease.

When risk for a company increases, it's bond yield will increase.

As a firm's debt-to-equity ratio increases, its risk of default also increases.

If two bonds are issued at par, the bond with the higher risk should have a higher interest rate, all else equal.

Secured bonds tend to be less risky than unsecured bonds.

When the market rate is higher than a bond's stated (or contracted) rate, the bond will trade at a premium over its par value.

When the market rate is lower than a bond's stated (or contracted) rate, the bond will trade at a discount relative to its par value.

When a bond is issued, the issuing company records a debit to Bonds Payable.

When a bond matures, the issuing company will record a credit to Bonds Payable.

When interest on a bond is paid, the Interest Expense account is credited.

When risk for a company increases, it's bond price will increase.

When risk for a company increases, it's bond yield will decrease.

As a firm's debt-to-equity ratio increases, its risk of default also decreases.

If two bonds are issued at par, the bond with the higher risk should have a lower interest rate, all else equal.

Secured bonds tend to be more risky than unsecured bonds.