标题: Quick question on Amort HTM [打印本页] 作者: malbec 时间: 2013-4-22 09:05 标题: Quick question on Amort HTM
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?作者: sdada 时间: 2013-4-22 09:06
(Beginning of the period bond value)*Yield - Par*Coupon
Bond value is amortized cost作者: infinitybenzo 时间: 2013-4-22 09:06
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作者: adehbone 时间: 2013-4-22 09:07
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
