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

Q: What is the relationship between bond prices and interest rates? Describe the process of…

A: Bond price: The present discounted value of a bond's future cash flow is known as the bond price.…

Q: What factors affect the market rates for bonds?

A: In general, the supply of and demand for bonds affect market rates. The market rate for particular…

Q: Define bonds payable.

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

Q: Who Issues Bonds?

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

Q: What are the difference between debt and equity and explain how the bonds market operates.

A: Debt are instruments which are used to fund a company’s requirement. These instruments include bonds…

Q: What is the difference between general obligation bonds and revenue bonds?

A: General Obligation Bonds(GOs) are bonds that are backed by the "full faith and credit" of the issuer…

Q: . How is the value of a bond determined?

A: Bond valuation: It may be a method utilized to decide a given bond's hypothetical reasonable value.…

Q: What are Bond prices and interest rates? And what is the relationship between them?

A: Bond is a debt instrument which provides regular periodic interest income to an investor. Generally,…

Q: When a bond is issued, what is its present value?

A: The present value of the bond is the total of the present value of the bond's interest payments that…

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: 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 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 is the required method of amortizing discount and premium on bonds payable? Explain the…

A:

Q: the formula for obtaining the gross yield on a bond.

A: Bond is the debt instrument issued by the borrowers to raise funds from various investors. Generally…

Q: How are bonds reported when classified as trading securities?

A: Trading securities are those securities which are purchased or sold for trading purpose i.e. to make…

Q: Explain why bonds are issued and identify the types of bonds?

A: Bonds are one method for corporations to generate funds. The investor undertakes to contribute the…

Q: Which features make a bonds interest increase at issuance?

A: Bonds - Bonds are the money borrowed for a fixed duration for fixed rate of interest.

Q: Define capital gains yield (on a bond)

A: The formula to compute capital gain yield as follows:

Q: What loss should Mirada record on the redemption of bonds?

A: Bonds are the financial instruments which shows the amount of ownership of debt in a business…

Q: are types of bond insurance available in the market (explain them)? How do the bond insurance affect…

A: Bond insurance are available in the market and this is done to improve the rating of bonds and…

Q: Why is it necessary to amortize the discount and premium on bond issues?

A: Introduction:   Bonds may be sold at a discount, at a premium, or at face value.

Q: Discuss how the duration of a bond's maturity affects the link between market interest rates and the…

A: This question explains about the duration of a bond's maturity affects the link between market…

Q: What is the dollar price of the bond?

A: Bond valuation is the process of determining the fair price of the bond. The fair price determines…

Q: Why discount and premium on issue of bonds is amortized?

A: Bonds are intangible assets, the amortization is similar to depreciation, it means systematically…

Q: What is general obligation bonds?

A: Bonds: A bond, also recognized as a fixed-income security, is a debt instrument shaped for the…

Q: what are treasury-indexed bonds?

A: Treasury Indexed Bonds are medium to long term securities for which the security's capital worth is…

Q: What are the similarities and difference between bonds and notes?

A: Notes payable: Notes payable is a written promise to pay a certain amount on a future date, with…

Q: When does a premium on bonds payable occur?

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: How does accrued interest on a bond affect the purchase price?

A: Interest on bond is normally paid semi annually. When a bond is transferred in between these…

Q: Which costs are included in bond issuance costs? How are they recorded?

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

Q: What is the difference between serial bonds, term bonds, callable bonds, and convertible bonds.

A: Bonds are securities which are issued for specified period and bear fixed interest payable on the…

Q: What is premium on bonds payable?

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

Q: a) What are the important bond features. Describe each feature what they indicate. What are Discount…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: What is the difference between callable and putable bonds?

A: Bonds are debt instruments issued by a company that borrows from its lenders. They are issued at a…

Q: Explain the relation between the bond value and yield of a Bond

A: The bond is a debt instrument that is issued by the organization to raise the funds from the…

Q: describe the characteristics and terminology of bonds payable

A: Definition of Bonds payable: Bonds are issued by Government , corporations etc.

Q: What is the effective-interest amortization mechanism for a bond discount or premium?

A: Method of interest amortization that is effective: Interest expenditure is calculated as follows:…

Q: How do I calculate the value of a bond

A: A bond is a debt instrument with which a shareholder credits cash to an entity, which can be a…

Q: What are the methods of determining interest on bonds?

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

Q: what do the bonds yield at the following prices?

A: The Yield To Maturity (YTM) is one one the method used to find out the price of bond. It gives the…

Q: Discuss how the amount of time before a bond's maturity affects the link between market rates of…

A: This question explains about the amount of time before a bond's maturity affects the link between…

Q: Determine the selling price of the bonds

A: The selling price of the bonds is the present value of the cash payments to be made during the life…