标题: Question about Bond and Cash Flow [打印本页] 作者: skyjiao 时间: 2007-11-21 23:04 标题: Question about Bond and Cash Flow
I am a little bit confused there, for bond issued as discount and premium, how they will affect the Cash Flow from Operations for the issuing firms.
Should they be recorded as (interest expenses - coupon payment) for each period? or just deduct the coupon payment from CFO.
Also, I think we have to deduct the principal payment from the Cash Flow from Financing each period, is that right?
In Schweser Practical Exam 1 Afternoon section, Question 61, choice B says that For a discount coupon bond, cash flow from operations will decrease by the amount of the periodic coupon payment, which is correct. I just wonder how to explain this?
Thank you for your attention, and expecting your resposne
