Quick question on Amort HTM accounting, difference, question, remember

malbec

I have been plowing through EOCs and my brain managed to squeeze out this easy bit of info that can be crucial.  I forgot how to amortize a bond when finding out how much to effect the IS when accounting for HTM securities… Interest payment +/- Amort amount.   I know you can find it by PV of of Cash Flows but I remember using an easier way (for me) by finding the difference between the amount received using the coupon payment and the amount received using the yield… I just don’t remember the exact formula. I think it was par x coupon - Yield x (thats where I forget)… i know it is a simple thing to calculate but my brain just froze up… any ideas?

sdada

(Beginning of the period bond value)*Yield - Par*Coupon
Bond value is amortized cost

infinitybenzo

Thats what I thought it was too but then I was looking over question 13 on CFAI 2012 Mock PM section and …
Beg on Period value of bond = $3600.60 andYield = 6%
3600.60 x .06 = 216.036
Par = 4000 and coupon = 5%
4000 x .05 = 200
the differnece is 16.036 but the aswer uses and amort amount of 23.7
Am I just misunderstanding the problem or using the formula incorrectly?
Thanks for ll your help

adehbone

Amortized cost of the bond you have to calculate. Market values are given to destruct you.
Baased on my calculations
Bond_beg = 3727.93
3727.93*.06=223.68