Overview of Bonds

In finance, bonds are a form of debt: the creditor is the bond holder, the debtor is the bond issuer, and the interest is the coupon.

In finance, there are many different types of bonds that vary in term agreements, duration, structure, source, and other characteristics.

On issuance, the journal entry to record the bond is a debit to cash and a credit to bonds payable.

Journal entries are required to record initial value and subsequent interest expense as the issuer pays coupon payments to the bondholder.