The total bond premium is equal to the market value of the bond less the face value. For instance, with a 10-year bond paying 6% interest that has a $1,000 face value and currently costs $1,080 in the ...
Learn how to calculate the present value of various bond types using Excel, including zero-coupon, annuities, and continuous ...
The carrying value of a bond refers to its face value, plus any unamortized premiums or minus any unamortized discounts. We can quickly calculate a bond's carrying value with only a few pieces of ...
Bonds don't get as much attention in the investing world as stocks do, but they play an equally important function in investment portfolios. The predictable cash flows that bonds offer stand in stark ...
When investors purchase bonds, they do so primarily to generate income. The expected annual rate of return is called the current yield, and it is a function of the current price and the amount of ...
Calculating interest expense on a payable bond should be relatively straightforward, but then the accountants got involved. Generally accepted accounting principles, or GAAP, turn what is ordinarily a ...
Bond investors need to know how to deal with bonds that cost more than their face value. Bond prices move up and down constantly, and it's common for bond investors to face situations where they have ...
Bond prices move up and down constantly, and it's common for bond investors to face situations where they have to pay more than the face value of a high-interest bond in order to persuade the current ...