The coupon rate a company pays on a bond is the most obvious cost of debt financing, but it isn't the only cost of financing. The price at which a company sells its bonds -- and the resulting premium ...
When a bond has an interest rate that's higher than prevailing rates in the bond market, it will typically trade at a price higher than its face value. Such a bond is said to trade at a premium, and ...
If you issue a bond at other than its face, or par, value, you must amortize the difference between the issue price and par. A premium bond sells for more than par; discount bonds sell below par.
The straight-line method is the simplest way to account for the amortization of a bond on a company's financial statements. This method attributes equal interest expense to every accounting period ...
Intangible assets are resources owned by a company that have value but no physical form. Common intangible assets within a company include patents, trademarks, goodwill and franchise licenses.
Steven Nickolas is a freelance writer and has 10+ years of experience working as a consultant to retail and institutional investors. Amy is an ACA and the CEO and founder of OnPoint Learning, a ...
The coupon rate a company pays on a bond is the most obvious cost of debt financing, but it isn't the only cost of financing. The price at which a company sells its bonds -- and the resulting premium ...
When a bond has an interest rate that's higher than prevailing rates in the bond market, it will typically trade at a price higher than its face value. Such a bond is said to trade at a premium, and ...
When companies issue a bond, they do so with a par value and a coupon rate: the terms that dictate the yield of the bond for potential investors. However, once they reach the market, bonds can trade ...