Answer
Payment of interest to bondholders periodically.
To retire the bonds on maturity, payment in cash.
Work Step by Step
The two major obligations incurred by a company when bonds are issued
Accounting: Tools for Business Decision Making, 5th Edition
by Kimmel, Paul D.; Weygandt, Jerry J.; Kieso, Donald E.
Published by
Wiley
ISBN 10:
1118128168
ISBN 13:
978-1-11812-816-9
Chapter 10 - Reporting and Analyzing Liabilities - Questions - Page 541: 12
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