Interest

Rate is high, mostly between 6% - 9%

The longer term , the higher the interest rate. Current corporate bond management regulations that corporate bond interest rate shall not exceed 40% of the same period of household savings deposit rates of banks

Liquidation order

Generally inferior to bonds and same of subordinated bonds, but the priority of repayment is higher than the common and preferred stock

Higher than the subordinated bonds and stocks

Principal payments

The creditor does not have a defined point in time to get the principal when the bond is not redeemed

Got principal payment as the maturity date of bond

Interest payment

Settlement on a regular period (six months is more common), but the interest payments can be deferred

Interest paid during one year or half of year generally; also paying interest and principal together at the maturity date of bond

Interest rising

Ascending after a redemption period, if the company does not redeem the bonds, the interest on floating accordingly, usually in addition to calculate the interest on treasury bills interest rate

Fixed rate bonds does not change; floating rate bonds with a floating market rate on a regular basis

Guaranteed

Unsecured bonds

Generally require third-party guarantees

Bond rating

Voluntary rating

If bond is not issued by national bank financial institutions, should be rated

Accounting measurement

Could be recorded in equity, are reported as “permanent capital instruments”

Recorded in liabilities, divided into “short-term liabilities”, “long-term liabilities” and other