Redemption of bonds payable

The redemption of bonds payable refers to the repurchase of bonds by their issuer. This usually occurs at the maturity date of the bonds, but may occur earlier if the bonds contain a call feature. In the latter case, the issuer calls the bonds early in order to take advantage of a decline in the market interest rate.

Related Courses

Accounting for Investments 
Corporate Finance 
GAAP Guidebook