FSA: amortization of discount or premium discount, simple

giakhanh39

a simple questino, when par  cost, is it a discount need to amortized ? Thanks.l

RoastBeef

I know this was all level 1 stuff but i think i forgot it all.
in the example above if par is 10,000, cost was 9,000 YTM 5%, coupon 4% , how would you calculate the the different charges.
A quick recap would be greatly appreciated.

jarobi04

Yes it will be added in interest expense.
Debit Interest Expense
Credit Discount on Bond
Credit Cash