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Long-term debt is frequently issued in the form of bonds payable. Bonds have a stated interest rate (that is almost always a fixed percentage), a face amount or principal, and a maturity date when they must be paid. Because the interest rate on a bond is fixed, changes in the market rate of interest result in fluctuations in the market value of the bond. As market interest rates rise, bond prices fall, and vice versa. The market value of a bond is the present value of the interest payments and maturity value, discounted at the market interest rate.
Approximate Word count = 363 Approximate Pages = 1.5 (250 words per page double spaced)
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