When comparing bonds and notes, it is important to highlight that bonds are normally issued to a single lender whereas notes are issued to a variety of lenders. Term bonds are bonds that must have the entire amount paid at one maturity date.
The full principal of the majority of bonds must be paid at the bond's single maturity date. The market rate is the interest rate that is stipulated in a bond contract as the interest rate that the company will pay to investors in the bond.
The carrying value of the amortization schedule for a bond issued at a discount rises with time. Bonds issued at a discount or a premium will have a carrying value that is different from their face value when they mature. Bond prices rise as interest rates decrease.
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