Accounting for Bonds
Lynch, Luann J., B...
Accounting for Bonds
Lynch, Luann J.; Benazzo, Jack
C-2475 | Published February 21, 2024 | 13 pages Technical Note
Collection: Darden School of Business
Product Details
This technical note provides an overview of accounting for bonds. It discusses bonds priced at face value, a discount, and a premium. It discusses the differences between the coupon rate and effective interest rate and their implications for both the pricing and accounting for bonds. It covers the amortization of bond discounts and premiums, and it briefly discusses the early retirement of bonds and accounting for bonds using the fair value method.
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