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Q: Calculating amortization on bond issue costs?
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How do you present bond issue costs on cash flow statement?

bond issuance cost is part of cash flow from financing activities and this amount is shown as outflow.


Is the straight-line amortization or effective interest rate method better?

This method is preferred over the straight-line method of amortizing bond discount or bond premium. Amortization of a bond discount or premium is the difference between the interest expense and the nominal interest payment. The amortization entry is: Interest Expense (effective interest rate x carrying value) Cash (nominal interest rate x face value) Bond Discount (for the difference)


Order the events in the life of a bond from earliest to latest A bond maturity B bond issue C coupon payment?

1)bond issue 2)coupon payment 3)bond maturity


When effective interest method is used to amortize bond premium or discount the periodic amortization will be?

increasse if the bonds were issued at either a discount or premium.


How do you get a savings bond?

Go to any bank with half the face value of the bond (a $100 bond costs you $50) and they will sell one to you.


When are issuers more likely to call an outstanding bond issue?

If the bond is 'callable' th issue will likely call it when yields fall as they can then refinance more cheaply.


Order the events in the life of a bond from earliest to latest?

1st-Bond Maturity 2ed- Coupon Payment 3ed- Bond Issue


What is the purpose of bond issue?

Communities issue bonds to build roads, schools, and public works.


How do you calculate the issue price of a bond?

i have 50.00 savings bond issued June 1985 how much is it worth


When was the last issue of Car Life magazine published by Bond Publishing?

The last issue of Car Life magazine by Bond Publishing was published in 1972.


Passing a bond issue to fund local libraries?

power


What are companies with outstanding bond issue in the market?

Companies with outstanding bond issue in the market are companies that have used tax payers' moneys in the form of bonds but have not paid back the bond. Bonds are usually used for projects that benefit society as a whole, such as new schools.