Sinking fund bonds: Require the issuer to set aside assets at specified amounts to retire the bonds at maturity. Require equal payments og both principle and interest over the life of the bond issue. Decline in value over time. Are registered bonds. Are bearer bonds. The Discount on Bonds Payable account is: A liability. A contra liability. An expense. A contra expense. A contra equity. The Premium on Bonds Payable account is a(n): Revenue account. Adjunct or accretion liability account. Contra revenue account. Contra asset account. Equity account