bonds payable

Definition

Bonds that are issued as payment for long term debt. Commonly used by government agencies and corporations to represent a formal promise to pay both semi-annual interest payments and the maturity amount by a pre-determined date.

Use bonds payable in a sentence

The bonds payable were finally issued and it was meant to take care of our long term debt and we were happy with that.

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When they purchases the savings bonds they were receiving bonds payable. They are purchased at a discount so you do not receive the full value until they mature.

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I hear that the new power plant that they are building 15 miles down the road was financed using bonds payable because the energy company did not have the capital to pay for the entire cost upfront, so they will repay the longterm debt periodically over the next several years.

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