What is meant by bond issue cost and how do we account for such bond

Q: What is Bond's interest income?

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: What impact do interest rates have on bond prices? What are the basic assumptions that go into…

A: This question explains about the fundamental assumptions that go into establishing the value of a…

Q: what does the bond rating depend on?

A: It is a credit rating which represents the creditworthiness of both the corporate and the government…

Q: Examples of bond accounts?

A: Bonds are fixed-income instruments that are issued by governments and businesses to raise capital.…

Q: What effect do interest rates have on bond prices? What are the underlying assumptions that go into…

A: Bond: Bond refers to debt security issued by the company from the debt investors to raise capital.…

Q: Who Issues Bonds?

A: A bond is a fixed income instrument. The bond holders are referred to as the debt holders or…

Q: How do I calculate the market price of a bond?

A: Market price of a bond is the present value of future cashflows.

Q: Difference between regular bond and perpetuity bond?

A: Debt markets are markets where you contribute within the institutions or trade substances by the…

Q: How do you calculate the price of bonds if you have the par value, contract rate, and market rate

A: This question teals about If you know the par value, contract rate, and market rate of bonds, you…

Q: How do you calculate the price of bonds if you know their par value, contract rate, and market rate

A: This question dells with  a bond's price if you know its par value, contract rate, and market rate

Q: What is the “call” feature of a bond issue? How does thecall feature affect the amortization of bond…

A:

Q: When might a bondholder use a convertibility feature?

A: This question illustrates how a bondholder can benefit from the convertibility provision.

Q: risk and what is the relation between interest rate risk and callable bonds. Explain with the help…

A: Interest rate risk : In simple words, Interest rate risk refers to the possibility of investment…

Q: What is meant by a bond indenture?

A: A Bond refers to an instrument that represents the loan being made by the investor to the company…

Q: How do interest rates affect bond valuations? What are the key assumptions in valuing a bond?

A: Bonds are the form of debt payable by the company. Interest rates on bonds to be paid is coupon…

Q: What is the link between the price of a bond and the rate of interest? Describe the origins of this…

A: This question describes the relationship between the price of a bond and the rate of interest, as…

Q: how to interpret the process of bond issuance?

A: Corporate Bond Issue: Corporate bond issuance is one method of raising capital for a company. A bond…

Q: Which of the following best describes a bond?     Short-term debt security      Long-term debt…

A: Bonds are debt instruments issued by companies and other entities like municipalities etc.Bonds…

Q: Why is the discount and premium on bond issues amortized?

A: The bonds can be issued at premium or discount on the basis of market rate of similar bonds.

Q: What is the difference between a note and a bond?

A: Both Note and bond are issued by treasury.These are interchangeably used terms as there is no legal…

Q: Define bond yield to maturity. Why is it important?

A: YTM or Yield To Maturity is internal rate of return which is genrated by a bond that equates present…

Q: What is original issue discount (OID) bond?

A: It is the amount of difference between the amount due at maturity and purchase value. These bonds…

Q: What is the stated rate for a bond?

A:

Q: What are income bonds and indexed bonds?

A: The income bond is a type of debt instrument wherein the borrower is relied upon to pay just the par…

Q: What is the principal repayment for a bond

A: There are two components principal and interest

Q: What is the carrying amount of a bond?

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: What effect do interest rates have on bond prices? What are the fundamental assumptions that go into…

A: SOLUTION-   A BOND REPRESENTS A PROMISE BY A BORROWER TO PAY A LENDER THEIR PRINCIPLE AND USUALLY…

Q: How is the price of a bond (or bond issuance) determined?

A: solution concept coupon rate of bond               The coupon rate of the bond is the stated…

Q: What effect do interest rates have on bond prices? What are the essential assumptions behind bond…

A: Introduction: Bonds are a kind of debt that the firm must repay. The term "coupon interest" refers…

Q: Why bonds is an investment opportunity and its benefits to bondholder?

A: Bonds are safe investment for investors and it is form of debt provided by investors to companies.…

Q: what is the difference between an investment grade bond and a junk bond?

A: Solution:- There are various companies like S&P etc, which give credit ratings to the companies…

Q: Explain the various types of bond. How are bonds traded in the market?

A: A bond is a debt security that is issued by many large entities and governments to borrow funds on a…

Q: What is new issue bond?

A: The bond is a fixed income financial instrument that is issued by the government or by the companies…

Q: Describe Why Some Bonds are Risky: Default Risk: Risk Premium: Impact of Economic Conditions

A: Bonds are a type of a financial security or a financial asset (for the investor) and like all…

Q: What impact do interest rates have on bond prices? What are the fundamental assumptions that go into…

A: SOLUTION-   A BOND IS LOAN FROM AN INVESTOR TO A BORROWER SUCH AS A COMPANY OR GOVERNMENT .THE…

Q: What impact do interest rates have on bond prices? What are the key assumptions that go into…

A: The answer are as follows

Q: From Service Leader's perspective, why are the bonds callable? What does that mean?

A: A callable bond is a kind of bond which allows the issuer to redeem the bond before it reaches its…

Q: How do bond ratings affect the default risk premium?

A: A premium which is paid by the borrower to its lender in the form of compensation of lender’s money…