When an entity issues bonds, it assumes two obligations: (1) to repay the face amount, the principal , on the due date, and (2) to pay interest , often, but not always, at semiannual intervals (i.e., twice a year). The obligation to pay the principal is usually a [current /

noncurrent] liability. The liability for interest that has been earned but is unpaid is a [current / noncurrent] liability.