A bond indenture is a legal document containing the principal amount, maturity date, stated interest rate and other requirements of the bond issuer Bond selling prices are determined by the market interest rate at the time of the sale and the stated interest rate of the bond

Notes payable and bonds payable are specific types of debt that businesses issue in order to generate financial capital Bonds can be issued under different structures and include different features

bond — type of financial instrument that a company issues directly to investors, bypassing banks or other lending institutions, with a promise to pay the investor a specified rate of…. principal — face value or maturity value of a bond (the amount to be paid at maturity); also, initial borrowed amount of a loan, not including interest. stated interest rate — (also, contract interest rate) interest rate printed on the face of the bond that the issuer agrees to pay the bondholder throughout the term of the bond; also known as the…. market interest rate — (also, effective interest rate) rate determined by supply and demand and by the credit worthiness of the borrower.