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    Serial bonds mature in installments over time, with portions of the total principal paid off on set dates each year until fully retired. For example, a P1,000,000 bond issued on January 1, 2020 may pay off P200,000 each year from 2020 to 2024. Term bonds, in contrast, have a single maturity date when the entire remaining principal is paid off at once. Callable and convertible bonds are considered term bonds despite allowing early repayment or conversion to equity.

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    intermediate accounting

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    Document6

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    Serial bonds mature in installments over time, with portions of the total principal paid off on set dates each year until fully retired. For example, a P1,000,000 bond issued on January 1, 2020 may pay off P200,000 each year from 2020 to 2024. Term bonds, in contrast, have a single maturity date when the entire remaining principal is paid off at once. Callable and convertible bonds are considered term bonds despite allowing early repayment or conversion to equity.

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    Document 6

    Uploaded by

    qnlrnr mlla
    Serial bonds mature in installments over time, with portions of the total principal paid off on set dates each year until fully retired. For example, a P1,000,000 bond issued on January 1, 2020 may pay off P200,000 each year from 2020 to 2024. Term bonds, in contrast, have a single maturity date when the entire remaining principal is paid off at once. Callable and convertible bonds are considered term bonds despite allowing early repayment or conversion to equity.

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    NOTES

    Serial bonds

    Serial bonds are those which have a series of maturity


    dates or those bonds which are payable in installments.

    For example, a P 1,000,000 bond issued on January 1, 2020


    may provide that the bond will mature as follows:
    December 31, 2020 200,000
    December 31, 2021 200,000
    December 31, 2022 200,000
    December 31, 2023 200,000
    December 31, 2024 200,000
    Term bonds
    Term bonds are those bonds that mature on a
    single date.

    Callable and convertible bonds can be classified as


    term bonds despite their special features.

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