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

Q: If you know the par value of bonds, the contract rate, and the market rate, how do you compute the…

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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: What factors affect the market rates for bonds?

A: In general, the supply of and demand for bonds affect market rates. The market rate for particular…

Q: Why is the required rate of return on a bond different than the copoun rate

A: Bonds are the debt securities which are issued by the corporates or the government to raise the…

Q: The amortization on a bond premium:

A: The amortization on a bond premium: (d) Is calculated by multiplying the bond’s carrying value by…

Q: Will the amortization of Discount on Bonds Payableincrease or decrease Bond Interest Expense?…

A: There will be an increase in the interest expense due to the amortization of discount on bonds…

Q: Why is the discount and premium on bond issues amortized?

A: The bonds can be issued at premium or discount on the basis of market rate of similar bonds.

Q: What effect do interest rates have on bond prices? What are the essential assumptions behind bond…

A: Introduction: Bonds are a kind of debt that the firm must repay. The term "coupon interest" refers…

Q: .How would the carrying value of a bond payable be affected by the amortization for discoun and…

A: Bonds are a form of loan Or debt, which is being issued by the company, on which regular interest…

Q: What exactly is a bond's "call" feature? What impact does the call feature have on bond premium or…

A: This question explains about a bond's "call" feature the call feature have on bond premium or…

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: What is the difference between the stated interest rate andthe market interest rate on a bond?

A: Interest: It can be defined as the cost that is paid by the borrower for using the money borrowed…

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: How is interest expense calculatedusing the simplified approach to the effective-interestmethod for…

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Q: With respect to bonds, when interest rates increase typically...

A: Bonds are inversely related to the interest rate. Since bond price is calculated based on interest.…

Q: What is the dollar price of the bond?

A: Bond valuation is the process of determining the fair price of the bond. The fair price determines…

Q: Why discount and premium on issue of bonds is amortized?

A: Bonds are intangible assets, the amortization is similar to depreciation, it means systematically…

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: What is the straight-line amortization approach with regards to a bond discount or premium?

A: Bond with a straight-line amortization schedule: The straight-line amortization technique is a way…

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: Does the interest rate on a T-bond include a default risk premium? Explain.

A: Treasury bonds (T – Bonds) are the bonds which are issued by the U.S. Federal Government in form of…

Q: g. The discount bond sells for ____________ as maturity approaches.

A: A discount bond is a bond that is issued at less than fair value. It can also be the case that the…

Q: What is the total rate of return on the bond?

A: Bonds are issued by various entities like corporates, municipal corporations, and governments of the…

Q: In regard to a bond discount or premium, what is the straight-line amortization method?

A: Straight-line amortization bondStraight line method of amortization is a process of amortizing…

Q: Identify/explain the relationship between coupon rate and yield to maturity for:   Discount Bonds…

A: Coupon Rate:It is the amount that is paid by the issuer to the bondholder at the pre-determined…

Q: a) What are the important bond features. Describe each feature what they indicate. What are Discount…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: How do premiums and discounts on long-term debt securities affect interest expense?

A: Long term debts are used by the large organisations to raise the fund and utilise them for various…

Q: What is the relationship between interest rate level and bond price? Why must this relationship be…

A: Bonds are a type of long-term debt often offered by government and corporations to raise loan.

Q: When the effective interest rate method is used, the amortization of the bond premium

A: Amortization of bond: The process of allocation and reduction of the discount or premium on bonds to…

Q: Why does a bond’s par or face value differ from its market value? Cite your references

A: Bonds are the debt obligations of a business on which it requires to pay regular interest to the…

Q: Which type of bonds offer a higher yield? Callable bonds Noncallable bonds

A: A callable bond is a type of fixed income bond which can be called back by the issuer as per the…

Q: a. What is the discount or premium from the issuance of the bonds payable? Indicate whether…

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Q: What is the effective-interest amortization mechanism for a bond discount or premium?

A: Method of interest amortization that is effective: Interest expenditure is calculated as follows:…

Q: what do the bonds yield at the following prices?

A: The Yield To Maturity (YTM) is one one the method used to find out the price of bond. It gives the…

Q: /hat is the issue price of the bond? (FV ples provided.)

A: Issue Price of the Bonds = Present Value of the Face Value of the Redemption + Present Value of the…

Q: explain how fluctuating market interest rates impact the price of a bond being sold on the secondary…

A: Bonds represent the liability for the company that is posted under the head non current liabilities…