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Do companies pay the principal of an issued bond or do they refinance it in some way? From my understanding companies issue say 5 billion $ in bonds, use the money for an investment (asset), get sufficient returns and pay their interest which is the line "Interest expense" in an income statement". What I find hard to grasp is how does a company repay the 5 billion $ in principal? How do they repay it if it all matures in a single quarter or year? Is there a line in the income statement that I don't know which shows how much principal a company pays in a quarter?



Submitted February 26, 2019 at 07:51PM by D4N7E https://ift.tt/2IEYu6b

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