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Long-Term Debt
Long-term debt is a debt obligation that has a maturity from the date the obligation was incurred of more than one year. The debt obligation commits the organization to repay the amount borrowed and to make daily interest payments through the life of the loan. Failure by the borrower to make the needed payments can result in bankruptcy.
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The salem company bond currently sells for $955 has a 12% coupon interest rate and $ 1000 par value pays interest annually an
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