- Held-to-maturity securities are reported on the balance sheet at amortized cost.
- Carrying value = Issue Price + Amortized Discount
- Amortized Discount = Issue Price * Interest Rate - Face Value * Coupon Rate
Saturday, May 8, 2010
Amortized Discount (a.k.a. Discount Amortization)
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CFA Level 2 (June 2010)
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