Compare the two commonly used methods of determining interest on bonds.

Q: In what ways do bonds amortize their discount and premium? Each one is explained in detail.

A: Solution concept Discount and premium bond               When the coupon rate of interest is greater…

Q: Define bonds payable.

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: Explain bonds issue between interest dates with examples.

A: Bonds are typically issued at interest dates in order to smoothen the flow of interest and…

Q: characteristics of bonds  -terminology of bonds  -types of bonds?

A: BONDS Meaning- Bonds are investment securities where an investor invest money in a company or to a…

Q: ._______ The deposits are used for redeeming a bond issue.

A: Following is the answer to the question.

Q: The market interest rate related to a bond is also called the

A: The market interest rate related to a bond effective interest rate.

Q: What is the difference between general obligation bonds and revenue bonds?

A: General Obligation Bonds(GOs) are bonds that are backed by the "full faith and credit" of the issuer…

Q: What are the four main issuers of bonds?

A: Answer: A bond is nothing but an interest bearing security that obliges the issuer to pay a…

Q: how to interpret the process of bond issuance?

A: Corporate Bond Issue: Corporate bond issuance is one method of raising capital for a company. A bond…

Q: What are the contract rate and the market rate for bonds?

A:

Q: xplain the calculation to find value of the bonds

A: The value of bond is the present value of coupon payment and present value of par value of bond…

Q: Explain why bonds are issued and identify the types of bonds?

A: Bonds are one method for corporations to generate funds. The investor undertakes to contribute the…

Q: Which are the main types of bonds issued by two major issuers namely?

A: Corporate bonds It is a bond issued by the company for raising the capital and sold to an investor.…

Q: Explain accounting for investment in bonds.

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: Explain Bonds Issued Between Interest Dates.

A: Bond: It can be defined as the instrument that carries a fixed rate of income and represents the…

Q: Explain the three fundamental criteria that separate bonds, evaluate the benefits and drawbacks of…

A: Corporate bonds are financial instruments that are offered to investors in exchange for preset…

Q: How is an interest payment on a bond calculated?

A: Bonds are debt instruments issued by corporations with a fixed interest rate(coupon rate) and…

Q: List the four main types of bonds in order from least risky to most risky. Describe who issues these…

A: Meaning of a bond: A bond is a form of loan in which a lender is lending the borrower a certain sum…

Q: What are the similarities and differences between warrants and convertible bonds?

A: Warrants are derivatives that give power to buy or sell any security within a period of time. It can…

Q: What amount of interest is expensed on a bond interest payment?

A: Whenever an interest payment is made on bonds, amount of interest expensed : Interest expensed =…

Q: How to calculate interest on bonds and how to journalize the interest.

A: Interest on bonds is computed on the basis of the rate mentioned on the bond on the face value of…

Q: Where and how are bonds proceeds recorded?  Bond interest and bond principal payments?

A: Bond is a financial instrument issued by the company to raise funds for the growth and development…

Q: What are bonds classified as?

A: Issue of bonds is a source of funds of a company. They are an acknowledgement of debt taken by the…

Q: What are convertible bonds? Which recording method is used?

A: Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by companies,…

Q: What are the different types of Bonds?

A: A corporate bond is a type of debt security that is issued by a firm and sold to investors. The…

Q: Discuss different types and characteristics of debt instruments with specific reference of Bonds.

A: Corporate bond- It is a bond issued by a company to fund its business operations, major expansions,…

Q: How are bonds and notes the same? How do they differ?

A:

Q: link between the price of bonds and the rate of interest?

A: There is a inverse relationship between price of bonds and rate of interest.  If interest rate…

Q: What are the similarities and difference between bonds and notes?

A: Notes payable: Notes payable is a written promise to pay a certain amount on a future date, with…

Q: Which costs are included in bond issuance costs? How are they recorded?

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: How do we compute for the Carrying Value beginning of a Bonds Payable? of a Notes Payable? Are there…

A: The carrying value (or "book value") of the bond at a given point in time is its face value minus…

Q: Contrast the following types of bonds: a. Secured and unsecured. b. Term and serial. c. Callable and…

A: Requirement a:   Secured Bond:   It is a form of investment in debt that is secured with a specific…

Q: Two interest rates are associated with pricing a bond.  Name and describe each.  How are they used ?

A: A bond is a debt instrument with which a shareholder credits cash to an entity, which can be a…

Q: Describe the process to record a bond a face value, discount value and premium?

A: Bonds payable are financial instruments. It representing a company’s commitment to pay back a…

Q: Define a floating-rate bond and give examples

A: Floating-rate bond is a bond pays a variable interest rate.  The interest rate is depends on a…

Q: What are the Pro's and con's of bonds?

A: The bonds are one of the most liquid and active financial instruments in the world. Bonds are…

Q: What are redeemable and irredeemable bonds? Explain in single sentence please

A: Redeemable bonds are the bonds which are redeemed after fixed no. of years.

Q: describe the characteristics and terminology of bonds payable

A: Definition of Bonds payable: Bonds are issued by Government , corporations etc.

Q: What are the reasons for issuing warrants and convertible bonds?

A: A bond is a debt security issued by governments and business organizations to raise borrowing…

Q: Describe the nature of bonds and indicate the accounting for bond issuances.

A: Capital market:   A capital market is a place where the shares and bonds are traded. This helps a…

Q: What are the methods of determining interest on bonds?

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: What is the difference between a mortgage bond and a convertible bond?

A: Mortgage bond: A mortgage bond (also known as a secured bond) is a corporate bond that is secured by…

Q: Determine the selling price of the bonds

A: The selling price of the bonds is the present value of the cash payments to be made during the life…