Answer:
1. Discount on Bonds Payable.
2. Carrying Value of Bonds
3. Bearer bonds
4. Sinking Fund Bonds
5. Secured bond
6. Convertible bond
7. Callable Bonds
8. Unsecured Bonds
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (creditor or investor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.
Generally, the bond issuer is expected to return the principal at maturity with an agreed upon interest to the bondholder, which is payable at fixed intervals.
The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest.
In the securities market, the different types of bond includes;
A. Discount on Bonds Payable: occurs when the contract rate is less than the market rate.
B. Carrying Value of Bonds: equals par value minus any unamortized discount or plus any unamortized premium.
C. Bearer bonds: is unregistered; interest is paid to whoever possesses them.
D. Sinking Fund Bonds: maintains a separate asset account from which bondholders are paid at maturity.
E. Secured bonds: pledges specific assets of the issuer as collateral.
F. Convertible bond: can be exchanged for shares of the issuer's stock.
G. Callable Bonds: issuer may retire it at a stated dollar amount before maturity.
H. Unsecured Bonds: Backed by the issuer's general credit standing.
