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- UID
- 223463
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- 346
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- 注册时间
- 2011-7-11
- 最后登录
- 2013-8-23
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par > Historical Cost of investment
1000 > 900
So am I right in saying it is a discount Bond.
This means YTM < Coupon Rate on Bond.
YTM=5%, Coupon=6%
Par * Coupon = 60 (1000 * .06)
Face * YTM = 900 * .05 = 45
Amortization of Bond Discount = 60 - 45 = 15 <- gets added to Income statement.
Next Period Investment Cost = 900 + 25 = 915
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发表于 2011-7-11 19:56
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