Is the repayment of a bonds principle tax-deductible?

Question

f i was a business, is the repayment of a bonds principle tax-deductible?

Also:

Can the failure to pay either the interest payments or the bond principle as agreed cause a firm to go into bankruptcy?

Answer 1

No principle is merely a cash item, with no income statement impact. The answer to your second question is no, although frequently its the other way around, i.e. a company in bankruptcy can repay its bonds