Bond Essentials

Bond Transactions

• Bond retirement

• Redemption of bonds payable

• Retirement of bonds

• Gain on retirement of bonds

Accounting for Bonds

• Accounting for bonds

• Accretion of discount

• Amortization of discount on bonds payable

• Amortization of premium on bonds payable

• Bond amortization schedule

• Effective interest method

• How to account for bond issue costs

Bond Features

• Bond call price

• Bond covenant

• Call feature

• Call premium

• Call provision

• Contractual interest rate

• Detachable warrant

• First call date

• Stated interest rate

Bond Valuation

• Deep discount bond

• How to calculate the carrying value of a bond

• How to calculate the issue price of a bond

• Par bond

• Premium on bonds payable

• Present value of a bond

Discounts and Premiums

• Bond discount amortization

• Discount on bonds payable

• Unamortized bond discount

Related Definitions

• Bond

• Bond certificate

• Bond interest expense

• Maturity date

• Sinking fund

• Yield curve