Saturday, May 8, 2010

Amortized Discount (a.k.a. Discount Amortization)

  • 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

0 comments:

Post a Comment