Discounts, Premiums and Bonds at Par (Intermediate Financial Accounting Tutorial #12)

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Before we moved onto valuing and reporting long term bonds I thought that I would provide a quick summary of bonds issued at a discount, premium or at par.

The stated rate is also known as the coupon rate, or face rate. The market rate is also known as the effective rate and is the rate at which you can get other very similar or identical financial instruments (for example, a bond may have been issued at a 4% coupon rate, 1 year later the market rate for those bonds might have shifted to 6%).

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Comments

Carson Rawle says:

Extremely helpful! Thanks!

μΈμˆ˜μ•„ says:

Thank you very much for explaining well. You saved my credits!

Sana Makani says:

awesome vid, clear and good explanation , thank you

Osif Fox says:

DDDDDDDISCOUNT! Lol love it man, thanks for the help!

yuwen Chen says:

SRY,but uhm can u tell me that investors are more willing to buy the discount one or the premium one? This question confused me a long time and i will have exams 2 day after,soooo plz plz plz plz !^^ TY!

Elisa Terragno Bogliaccini says:

thank you!!

Ochuko Ofiuvwo says:

Did you do any videos where you actually worked through a Bond Discount and a Bond Premium problem? If not is there a way you could do one please?

feikyid says:

thank you so much !!!!!

Aybike Tunç says:

Thank you so much! Finally i could understand this issue!

Francis Valencia says:

best explanation!

Nicoolio says:

Can you add subtitles to your videos? I tried watching this one with CCs, but it was too confusing:
"We're talking book bomb theory in this video. home theory virginia does not revolve around the discussion I love James Bond."

Sage Mode says:

Thank you, this was very helpful

ammr mmar says:

Great video thanx

NarutoUchiha0100 says:

Can you teach at my college? You're videos are so clear and easy to follow and understand!

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