How does the payment of a bank loan’s principal and a bond’s par value differ?

Q: Which of the following statements is true regarding bond anticipation notes?

A: A bond is a type of financial security in which the issuer owes the holder a debt and is obligated –…

Q: What is the excess of the issue price of bonds over their face amount called? premium discount…

A: Premium on Bonds: When bond market costs higher than its face value then bonds is called at premium.…

Q: Difference between regular bond and perpetuity bond?

A: Debt markets are markets where you contribute within the institutions or trade substances by the…

Q: What is a bank discount? How does it differ to simple interest? State the bank discount formula

A: Bank DiscountIt is the Interest amount on the loan that is being subtracted from the principal value…

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: How do you calculate the price of bonds if you know their par value, contract rate, and market rate

A: This question dells with  a bond's price if you know its par value, contract rate, and market rate

Q: What is meaning bond? And then try to determine the differences areas between bond and loan.

A: Bonds: A bond, also recognized as a static-income security, is a debt instrument shaped for the…

Q: How should discount on bonds payable be reported on the financial statements? Premium on bonds…

A: Concept: A premium on bonds occurs if, the bonds are issued at a high price than the face value. On…

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

A:

Q: How does mortgage pay-through bond (MPTB) resemble a mortgage-backed bond (MBB)? How does it differ?

A: Introduction: The mortgage pay-through bonds are also called as hybrid securities. These bonds have…

Q: what is the difference between bonds payable and accounts payable? explain your answer?

A: Bond payable and account payable both are liabilities of the company , which is to be paid in future…

Q: Which of the following statements relating to bonds is incorrect? * O The owner of a registered bond…

A: Bonds are a form of loan or debt which is being issued or raised by the business, on which regular…

Q: How does the carrying value of a bond gets amortized when selling it at discount?

A: The carrying value of bond represents the amount of Bond Face Value + unamortized premium (or )–…

Q: When accounting for a bond whose interest is included in the face amount, the account Discount in…

A: Discount in Bond payable Issue of bond which can be incurred in between face value, discount and…

Q: Which of the following is true for bonds issued at a discount? a. The stated interest rate is…

A: The issue of bonds at discount means that the cash received from the issue of bonds is less than the…

Q: When does a discount on bonds payable occur?

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

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: What loss should Mirada record on the redemption of bonds?

A: Bonds are the financial instruments which shows the amount of ownership of debt in a business…

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 is difference between a bond and a term loan? what are the advantages of a term loan over a…

A: A bond is a fixed-income security that speaks to credit to a borrower (normally corporate or…

Q: What type of account is Discount on Bonds Payable? What is its normal balance? Is it added to or…

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: What effect does collateral have on the interest rate paid on a bond? Subordination also has an…

A: Many variables influence the interest rate on a bond, including collateral, subordination, and so…

Q: What does it mean to amortize a bond premium or discount? Why is it necessary?

A: Introduction: A bond is a contract between the bond lender and the bondholders. The two most common…

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

A:

Q: credit to Premium on Bonds Payable?

A: Premium on Bonds Payable is the amount at which it is issued in excess of par value. Premium on…

Q: What is “imputed interest”? In what situations is it necessary to impute an interest rate for notes…

A: Imputed Interest: According to the Internal Revenue Service (IRS), an imputed interest is an…

Q: Each bond differs with respect to risk and expected return. Differentiate between treasury bonds,…

A: Bonds are the fixed income investment instruments that are issued by the corporations or government…

Q: How does collateral affect the interest rate on a bond? How does subordination affect the interest…

A: The interest rate on a bond is affected by many factors like collateral, subordination, etc.

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: When does a premium on bonds payable occur?

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: What are the similarities and differences between mortgage securities and corporate bonds?

A: Introduction: Mortgage related security is a form of security in which investor collects payment…

Q: What is the main difference between notes payable and bonds payable?

A: Following are the differences between Bond and note payable.  Bond are issued to raise long term…

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: If bonds issue at a discount, is the stated interest rate less than, equal to, or more than the…

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

Q: What is the difference between annuities and corporate bonds?

A: An annuity is a lump sum or a series of payments paid to someone on a periodic basis. In other…

Q: What is a bond?

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: What is the difference between callable and putable bonds?

A: Bonds are debt instruments issued by a company that borrows from its lenders. They are issued at 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: Are the over-collateralizationa requirements for mortgage pay-through bonds the same as for…

A: Over collateralization implies that contract pools are larger noteworthy than the number of…

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…

Characteristics of Bonds