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Farish Ch 13: Bond Amortization Table Exam Questions And Answers Guaranteed Pass. R244,58   Add to cart

Exam (elaborations)

Farish Ch 13: Bond Amortization Table Exam Questions And Answers Guaranteed Pass.

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  • Course
  • AMORTIZATION
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  • AMORTIZATION

What is the order columns of the Amortization Table? - correct answer A: Interest Payment B: Interest Expense C. Discount Amortization D. Discount Balance E. Carrying Value A: Interest Payment - correct answer Face Val...

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  • October 11, 2024
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  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • AMORTIZATION
  • AMORTIZATION
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Farish Ch 13: Bond Amortization Table

What is the order columns of the Amortization Table? - correct answer A: Interest
Payment

B: Interest Expense

C. Discount Amortization

D. Discount Balance

E. Carrying Value



A: Interest Payment - correct answer Face Value x Stated Rate



B: Interest Expense - correct answer Carrying Value (E) x Market Rate



C. Discount Amortization - correct answer Interest Expense - Interest Payment

B-A



E. Carrying Value - correct answer for a discount:

• Prior Carrying Value + Discount Amort. (because discounts rises to Par)

• Prior E + C



for a premium:

• Prior Carrying Value - Discount Amort (because premiums decrease to Par)

• Prior E + C



D. Discount Balance - correct answer Prior Discount Balance - Discount Amort.



Prior D - C

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