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Search results “Discount and premium bonds”

06:42
Before we moved onto valuing and reporting long term bonds I thought that I would provide a quick summary of bonds issued at a discount, premium or at par. The stated rate is also known as the coupon rate, or face rate. The market rate is also known as the effective rate and is the rate at which you can get other very similar or identical financial instruments (for example, a bond may have been issued at a 4% coupon rate, 1 year later the market rate for those bonds might have shifted to 6%). Website: http://www.notepirate.com Follow us on Facebook: https://www.facebook.com/pages/Note-Pirate/514933148520001?ref=hl Follow us on Twitter: https://twitter.com/notepirate We appreciate all of the support you guys have given us. Be apart of the mission to help us reach more students by subscribing, thumbs upping and adding the videos to your favorites! ** Notepirate is privately owned and exclusive to Notepirate.com.**
Views: 35037 Notepirate

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Bond discount and premium calculation basics and the resulting after tax costs. Get more answers at our forum for finance and accounting at passingscoreforum.com
Views: 9937 Passing Score

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Views: 68902 Edspira

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This video will help you understand why companies issue bonds at a discount. We will not go over any calculations in this video.
Views: 3573 Accounting Videos

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Views: 111169 Edspira

20:58
Bond valuation, bond interest expense, par value, amortization, straight line method, effective interest rate method, bond discount, bond premium, carrying value of bond, premium, discount, bond issue between interest dates, CPA exam

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Understand the dfference between a bond purchased (issued) at a discount versus a bond purchased (issued) at a premium, bond has two cash flows, (1) face value or principal amount paid at maturity and (2) interest payment (usually semi annual) based on the stated rate of interest on the bond, example shown as a cash flow diagram, present value (PV) what its worth when issued (issue date) based on discounting bonds cash flows (maturity value + interest payments) back to issue date using the market rate of interest, comparing the bonds present value to its future value (face value) determines whether the bond is purchased (issued) at a discount or premium amount, for a discount (bonds PV is less than on the bonds face value) while for a premium(amount the PV is greater than its face value), detailed example comparing amortization schedules for bond discount versus bond premium, details cash interest payments (stated rate of interest x bond face value), interest expense (market rate x carrying value of bond outstanding debt), amortized interest expense (interest payment - interest expense),subtract amortized premium to the bonds carrying value to determine the bonds new carrying value (bond amortization),
Views: 34670 Allen Mursau

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This video explains how to calculate a bond that sells at a discount. It shows the corresponding journal entries on the original sale and interest payments. It also shows how to prepare the amortization table and explains what the numbers represent.
Views: 28177 mattfisher64

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Views: 23952 Roger CPA Review

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http://www.accounting101.org An example problem on discount and premium amortization on bonds.
Views: 18451 SuperfastCPA

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What is a bond, including the calculation of how to value a discount bond. An understanding of the Time Value of Money is necessary. For more questions, problem sets, and additional content please see: www.Harpett.com. Video by Chase DeHan, Assistant Professor of Finance at the University of South Carolina Upstate.
Views: 2338 Harpett

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Views: 27865 Roger CPA Review

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Views: 27627 Edspira

07:55
How to calculate the bond premium or bond discount based on the present value of a bond (issued) for both a bond issued at a discount and a bond issued at a premium, bond has two cash flows, (1) face value or principal amount paid at maturity and (2) interest payment (usually semi annual annuity type payments) based on the stated rate of interest on the bond, example shown as a cash flow diagram, present value (PV) what its worth when issued (issue date) based on discounting bonds cash flows (maturity value + interest payments) back to issue date using the market rate of interest, comparing the bonds present value to its future value (face value) determines the discount or premium amount on the bond, both cases (bond premium versus bond discount) are demonstrated and calculated based on a cash flow diagram which includes the bonds future value (face value, maturity value) and interest payment amounts, using Excel present value function the cash flows are discounted back using the market rate of interest to determine a discount or premium amount on the bond (discount PV is less than face value while premium PV greater than face value of bond), must determine bond discount or premium for amortization of the bond used in accounting, detailed example by Allen Mursau
Views: 9887 Allen Mursau

12:59
This video goes through the calculation of a bond premium and then prepares a spreadsheet showing the amortization of the premium. Finally it shows the corresponding journal entries. To see all my video links, look at my playlists at my channel: mattfisher64.
Views: 9546 mattfisher64

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Views: 405 EzStizi Gaming

07:01
This video shows how we use the straight line amortization method to record interest expense for both a discount and a premium.
Views: 30913 mattfisher64

34:51
Bond valuation, bond pricing, bond interest expense, par value, amortization, straight line method, effective interest rate method, bond discount, bond premium, carrying value of bond, premium, discount, bond issue between interest dates, CPA EXAM

06:59
Download Excel workbook http://people.highline.edu/mgirvin/ExcelIsFun.htm Learn how to create a Bond Discount or Premium Amortization Table. See how a Discounted Bond Actually Increases Interest and a Premium Reduces Interest.
Views: 17591 ExcelIsFun

09:51
Download Excel workbook http://people.highline.edu/mgirvin/ExcelIsFun.htm Learn about how Bonds can be sold at Par, Discount or Premium. See how to Create an IF Function formula to indicate whether the Bond is sold at a Discount, Premium or Par.
Views: 7327 ExcelIsFun

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Views: 7296 Edspira

07:51
How to amortize a bond issued at a discount (present value less than face value of bond) using the effective interest rate method, bond has two cash flows, (1) face value or principal amount paid at maturity and (2) interest payment (usually semi annual) based on the stated rate of interest on the bond, example shown as a cash flow diagram, present value (PV) what its worth when issued (issue date) based on discounting bonds cash flows (maturity value + interest payments) back to issue date using the market rate of interest, comparing the bonds present value to its future value (face value) determines the discount amount on the bond (amount the PV is less than its face value), the discount amount has to be amortized over the life of the bond using an amortization schedule, detailed example showing how to setup amortization schedule and use the schedule to amortize the bond discount, detailed calculations with accounting journal entries (T accounts)on balance sheet template for bond payable, discount on bond payable, interest payments, interest expense (market rate x carrying value of bond), amortized interest expense (interest payment - interest expense), add amortized discount to the bonds carrying value to determine the bonds new carrying value (bond amortization), detailed calculations and accounting by Allen Mursau
Views: 51942 Allen Mursau

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Views: 12989 Roger CPA Review

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Governmental Accounting Bonds Issued at Premium Versus Discount & Serial Versus Term Bonds, Governmental Funds account & Accounting Control Group account for recording the (A) Bond Issued (thru Capital projects Fund), Debt Service Fund & General Long-Term Debt Account Group, (B) Inter-fund entries for Bond Premium, (C) Semi-annual Interest & Principal Payments, Discount Amt. Has No Effect On General Long-Term Debt Account Group, Capital Projects Fund (Accts. for Resources used in construction), Debt Service Fund (Accumulates \$ To Pay Debt), General Long-Term Debt Account Group Accts. for (Unmatured Principal of Obligation (Debt)), detailed accounting by Allen Mursau
Views: 664 Allen Mursau

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Lesson discussing how the value of a bond changes when coupon rates and market rates differ. Looks at why a bond will trade at a premium, discount, or at par For more questions, problem sets, and additional content please see: www.Harpett.com. Video by Chase DeHan, Assistant Professor of Finance at the University of South Carolina Upstate.
Views: 3946 Harpett

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Short walk-through on creating a journal entry for bond premium at issuance and on semi-annual interest payment.
Views: 10187 ProfessorBDoug

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bond indenture, Bonds payable, covenants, Long-term notes payable, Secured, Unsecured bonds, Term, Serial, and Callable bonds, Convertible, Commodity-Backed, Deep-Discount bonds, Registered bonds, Bearer bonds, coupon bonds, Income, Revenue bonds. Bond valuation, bond pricing, bond interest expense, par value, amortization, straight line method, effective interest rate method, bond discount, bond premium, carrying value of bond, premium, discount, bond issue between interest dates, CPA EXAM

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An overview of bond premiums and discounts under the straight-line amortization method, to accompany http://www.principlesofaccounting.com Chapter 13, Long-Term Obligations. *Check out the Classroom page to find out how to take this course for credit: http://www.principlesofaccounting.com/classroom.html
Views: 13808 Larry Walther

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Views: 151 new sparky

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This video discusses advantages and disadvantages of bonds compared to stock. It also describes issuing at par, at a discount and at a premium. Finally it discusses the contract rate ( also known as coupon, stated, or nominal rate) vs the market rate.
Views: 6689 mattfisher64

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What is a bond? How do bonds work? How do they behave as interest rates fluctuate? #Bonds #PersonalFinance #FinancialEducation
Views: 33 The Market is Open

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Accounting for bond amortization comparing straight line amortization versus effective interest amortization method (amortization schedule calculated for each case), (1) straight line method amortizes the premium (or discount) evenly (beginning carrying value - maturity value)/number of periods amortized, (2) effective interest method amortizes the premium (or discount) based on the yield rate of the bond, in both cases compare the amortized amount to the cash payments to determine interest revenue recognized, the example includes calculating the effective interest rate, example Corp-A purchases 9% Stated IR on Bonds, \$300,000 maturity value & Bonds mature in 3 years, pay interest semi-annually: 1-Purchase at 102 3/4 (102.75% of par), at premium, 2-Bonds Stated 9% IR is given but the Yield Rate is not given, 3-Must calculate the Yield (Effective) Interest Rate to amortize the Bonds using the Effective Interest Method, detailed calculations by Allen Mursau
Views: 13766 Allen Mursau

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This CFA Level I video covers concepts related to: • Long Term Liability • Bond and Bond Terminology • Market Rate vs. Coupon Rate • Bond Issued at Par • Bond Issued at Discount • Bond Issued at Premium • Cash Flow Treatment • Zero Coupon Bond • Issuance Cost • Amortization Methods • Recognition of Debt • Debt Covenants • Presentation and Disclosure of Long Term Debt For more updated CFA videos, Please visit www.arifirfanullah.com.
Views: 36823 IFT

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Views: 3832 CA Nikhil Jobanputra

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Accounting for bond issued at a discount and determining effective interest rate (effective yield) and bonds issue price, the example is Corp-A issued \$800,000 of 10%, 20-year bonds on (1/1/20X1), at 97(97% of par or face value), interest is payable semi-annually on (1/1) and (7/1), Corp-A uses the Effective Interest Method of amortization for bond premium or discount, Bond sells for more than face value, sells at a Premium, Case (1) is where the issue price is known along with stated rate of interest and interest payments, from this the effective yield interest rate is determined using Excel function YIELD (could use a financial calulator as well, Case (2) Bond issue price is unknown, effective yield interest rate is known and calculate the issue (sales) price of bond by using Excel Present Value functions, based on the results an amortization schedule is setup using the effective interest rate, also overview of journal enties are shown, detailed accounting by Allen Mursau
Views: 1060 Allen Mursau

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Views: 416 Cheri Bergeron

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Views: 24635 Edspira

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Views: 5225 ExcelIsFun

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Views: 16233 Asset Yogi

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The effective interest method of amortizing bond premiums and discount. This includes detailed example of amortizing a bond discount.
Views: 6670 Bill Conner

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The Finance Coach: Introduction to Corporate Finance with Greg Pierce Textbook: Fundamentals of Corporate Finance Ross, Westerfield, Jordan Chapter 7: Interest Rates and Bond Valuation Objective 1 - Key Objective: Bonds Bond Cycle Inverse relationship between bond value and interest rate Face Value vs. Discount vs. Premium Bond To minimize interest rate risk purchase a bond with 1) shorter time to maturity 2) higher coupon rate Semiannual vs. Annual Coupons Bond Value Formula Coupon (C) Time to Maturity (t) Yield to Maturity (r) Face value paid at maturity (FV) Fisher Effect (Exact vs. Approximate) Nominal Rate (R) Real Rate (r) Inflation Rate (h) More Information at: http://thefincoach.com/
Views: 3784 TheFinCoach

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This video illustrates the following:  What is a bond discount?  Amortizing bonds’ discount using the straight-line method.  What is a bond premium?  Amortizing bonds’ premium using the straight-line method.

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