Amortized value of a bond
[DOCX File]Statutory Accounting Principles Working Group
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The discount or premium is amortized over the life of the bond. The net book value (NBV) of the bond at any point in time is the par amount + unamortized premium (or - unamortized discount). The standard way to amortize the premium or discount is the effective interest method.
[DOCX File]Statutory Accounting Principles Working Group
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Pursuant to the yield-to-worst concept, bonds shall be amortized to the call or maturity date that produces the lowest asset value. In the event a bond has not been amortized to the lowest value prior to the call, or in cases of an accepted tender bond offer (BACV is greater than the consideration received), the entire difference between ...
[DOC File]Bond Valuation Tutorial - Premium
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Bonds are reported at amortized cost, that is, the face amount less any applicable discount or plus any outstanding premium. These amounts are a function of the selling price of the bond, its market value at the time of sale, and are fixed for the duration of the bond. Market prices for bonds, however, vary continuously with changes in market ...
[DOCX File]Chapter 10
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The option-adjusted spread between the GNMA bond and the T-bond should reflect the value of the option. 27. Use the options prepayment model to calculate the yield on a $30 million three-year fully amortized mortgage pass through where the mortgage coupon rate is 6 percent paid annually.
[DOC File]Chapter Twenty Eight
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12–27. (a) Because the market rate equals the stated rate, the face value of the bond will equal the market value of the bond. In this case, a bond issuance with a face value of $75 million will result in cash to Ritetime of $75 million. The associated journal entry would be. Cash 75,000,000. Bonds Payable 75,000,000 12–27. (Concluded)
[DOCX File]Statutory Accounting Principles Working Group
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What is the face value of the bonds? What is the amount of the premium on the bonds? Subtract the face value of the bond from the present value of the bond. In order to balance the journal entry, is the amount entered as a debit or credit? ... Interest Expense (4,000 – amortized premium) 2,195.90. 2,154.95 Premium on Bonds Payable (36,082/20 ...
[DOC File]Professor Paul Zarowin - NYU Stern School of Business
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Pursuant to the yield-to-worst concept, bonds shall be amortized to the call or maturity date that produces the lowest asset value. In the event a bond has not been amortized to the lowest value prior to the call (BACV is greater than the consideration received), the entire difference between consideration received and the BACV shall be ...
Amortized Bond - Overview, How It Works, Amortization Methods
Bonds, except for mandatory convertible bonds: For reporting entities that maintain an asset valuation reserve (AVR), the bonds shall be reported at amortized cost, except for those with an NAIC designation of 6, which shall be reported at the lower of amortized cost or fair value.
[DOC File]1._Some of the factors to be considered in determining ...
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Jun 16, 2009 · Bond discount is amortized semiannually on a straight-line basis. On April 1, 2008, $1,500,000 of these bonds were converted into 30,000 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion.
[DOC File]For example, assume that on January 1, 1998, a company ...
https://info.5y1.org/amortized-value-of-a-bond_1_a1b1b9.html
A bond issued at par will have a book or carrying value, or net liability, equal to the par or principal of the bond. This amount should be reported as the carrying value on each balance sheet date. When a bond is sold at a premium or discount, the premium or discount must be amortized …
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