Long-Term Liabilities

process of spreading or allocating a cost or payment over a period of time

fixed regular payment stream paid in the same amount every period for a period of time

long-term liability often issued by corporations, governments and nonprofit organizations

face amount of a bond less unamortized discount or plus unamortized premium

for bonds, rate of interest to be paid at fixed intervals

actual amount stated on a bond or note that reflects the principal amount borrowed

value a sum of money will be worth at a future point in time, given the effects of interest

long-term liability that is to be paid in set payments at specific points in time

percentage of principal that reflects the cost of borrowing money, usually expressed in annual terms

going or comparative interest rate for similar investments or loans

annuity payment that occurs at the end of each period

amount a sum of money is worth in the present

selling a bond with a stated rate that is lower than market rate, resulting in a bond sale price below face value

selling a bond at a higher market price than its face amount