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Bonds must be issued on an interest payment date. True or False

Bonds must be issued on an interest payment date.

True or False

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Answer #1

Not necessarily, they can be issued at some other date too.

Example: Thompson Corporation proposed to issue $100,000 of 12% bonds, dated April 1, 2011. However, despite the April 1 date, the actual issuance was slightly delayed, and the bonds were not sold until June 1. In this situation, Thompson will collect certain amount from the purchaser of the bonds at the time of issue and then return it within the next interest payment date.

Therefore, Answer: False

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