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Bond premiums refer to bonds that are issued at a price above its face value. for example, if the market rate for a bond is 8% and the stated rate on the bond is 9% then it would be a premium bond.
Bond discounts refer to bonds that are issued at a price below its face value. For example, if the market rate for a bond is 9% and the stated rate on the bond is 10%, then it would be a discount bond.
What else can I help you with?
Are the amortization of discounts or premiums recorded as part of interest income on the income statement?
True
How do you calculate book yield on a bond?
To calculate the book yield on a bond, you first need to determine the bond's annual interest payment, also known as the coupon payment. Then, divide the annual interest payment by the bond's book value (the price paid for the bond, adjusted for any amortization of premiums or discounts). The result is expressed as a percentage, representing the book yield. This yield reflects the return an investor can expect based on the bond's accounting value rather than its market value.
What has the author Sara Ann Reiter written?
Sara Ann Reiter has written: 'Estimation issues in bond rating models' 'The use of bond market measures in financial accounting research' 'Accounting measures of unfunded pension liabilities and bond risk premiums (pension accounting and bond risk premiums)'
How do you reduce car insurance premiums?
pay your premiums on time, drive safely and as you get older they go down too. You could also take driver's ed and have good grades or other applicable discounts.
Explain the application of discounts on Sasria premiums?
Discounts on Sasria premiums are typically applied to encourage policyholders to maintain coverage against specific risks, such as civil unrest or public disorder. These discounts can be offered based on factors like the insured's claims history, loyalty, or the implementation of risk mitigation measures. Additionally, discounts may vary depending on the type of coverage selected or the insured's profile, promoting broader participation in Sasria's protective offerings. Overall, the application of discounts aims to enhance accessibility and affordability of coverage for individuals and businesses.
When a bond issued at face value is retired what is the journal entry?
When a bond issued at face value is retired, the journal entry involves debiting the Bonds Payable account for the face value of the bond and crediting the Cash account for the same amount. The entry reflects the payment of the bond's principal amount to the bondholders. If there are no premiums or discounts involved, this is a straightforward transaction, as no gain or loss is recorded. The journal entry would look like this: Debit: Bonds Payable Credit: Cash
How can a Michigan driver lower his car insurance premiums?
Drivers from Michigan can lower car insurance premiums by driving carefully, avoiding accidents and speeding tickets. There are also discounts available to good students, seniors, and veterans.
Explain the application of discounts on SASRIA premiums and give an example?
.sasria.co.za/wp-content/uploads/2020/02/20009-Discount-Section.pdf
Is there a difference between accounting for conversion of bonds and accounting for the conversion of preferred stock?
Bonds have discounts and premiums and accrued interest. Preferred Stock doesn't.
Are insurance rates much higher this year than they were last year?
Insurance rates may increase or decrease depending on the driver's track record. Reckless driving leads to higher premiums, just as safe drivers often receive discounts and lower premiums.
What are some ways to lower Honda motorbike insurance premiums?
Insurance premiums are often higher with riskier behavior, but there are still ways to save on costs. Users can try bundling their insurance policies to receive a discount. Also, many insurance providers will provide discounts for those who take safety courses.
Compared to other companies, does The Alliance Insurance Company offer affordable premiums?
Yes they do offer the combined policy discounts to their customers. Call for a quote today and you will not be dissapointed about your decision. You will be in good hands.
