Chapter 12 formulas Flashcards
(4 cards)
1
Q
Formula for Bond Price
A
C x ((1-(1/(1+r)^n))/r)
2
Q
If bond is discounted what is done with bond discount
A
add it to net carrying value
3
Q
if bond is issued at premium what is done with bond premium every interest period
A
subtract premium from net carrying value
4
Q
are changes in fair value of bonds recorded after issuance?
A
No
