how to interpret the process of bond issuance?

Q: What is indexed bond?

A: It is a bond with a interest rate which is connected to a index, for example, the bond market…

Q: e the incremental method to record the issuance of the bonds and warrants.

A: Solution Working note Method to be used         =incremental method to record the issuance of the…

Q: What does a bond issue's "call" feature entail? What effect does the call feature have on bond…

A: This question deals with the "call" feature of a bond issuance entails and the call feature's effect…

Q: In general, how is the rate on a floating-rate bond determined?

A: The bond that changes in interest entirety in line with market interest rates or a few other…

Q: Under what conditions of bond issuance does a discounton bonds payable arise? Under what conditions…

A:

Q: . How is the value of a bond determined?

A: Bond valuation: It may be a method utilized to decide a given bond's hypothetical reasonable value.…

Q: When might a bondholder use a convertibility feature?

A: This question illustrates how a bondholder can benefit from the convertibility provision.

Q: What is meant by a bond indenture?

A: A Bond refers to an instrument that represents the loan being made by the investor to the company…

Q: What is a bond indenture?

A: Bonds: Bonds are debts instruments issued by corporates. Bonds are issued at par, premium and…

Q: When a bond is issued, what is its present value?

A: The present value of the bond is the total of the present value of the bond's interest payments that…

Q: Define bond rating

A: Bond-rating It is a method for estimating a bond's financial soundness which relates to a…

Q: What is the principal repayment for a bond

A: There are two components principal and interest

Q: How is the present value of a bond calculated?

A:

Q: Explain why bonds are issued and identify the types of bonds?

A: Bonds are one method for corporations to generate funds. The investor undertakes to contribute the…

Q: Explain face amount, discount, and premium relating to bond issuance.

A: Face value is also known as par value. Face amount of bond issuance is the amount on which coupon…

Q: Describe the characteristics of traditional bonds and contemporary bonds

A: Traditional bonds can be categorized in to two types, Secured and unsecured bonds. Bonds which have…

Q: What is a bond payable?

A: Long-Term LiabilitiesLong-term liabilities are the obligations of the business that need not be paid…

Q: What is new issue bond?

A: The bond is a fixed income financial instrument that is issued by the government or by the companies…

Q: What is a bond indenture? What provisions are usually included in it?

A: Bond indenture: Its a written legal document.

Q: How is an interest payment on a bond calculated?

A: Bonds are debt instruments issued by corporations with a fixed interest rate(coupon rate) and…

Q: What are the similarities and differences between warrants and convertible bonds?

A: Warrants are derivatives that give power to buy or sell any security within a period of time. It can…

Q: How is the price determined for a bond (or bond issue)?

A:

Q: are types of bond insurance available in the market (explain them)? How do the bond insurance affect…

A: Bond insurance are available in the market and this is done to improve the rating of bonds and…

Q: What information is contained in a bond indenture? What purpose does it serve?

A:

Q: credit to Premium on Bonds Payable?

A: Premium on Bonds Payable is the amount at which it is issued in excess of par value. Premium on…

Q: different types of risk that bond investors and issuers face, and discuss how a bond’s terms and…

A: The bond is a special type of security with fixed income and low risk. This is a financial…

Q: What are the similarities and difference between bonds and notes?

A: Notes payable: Notes payable is a written promise to pay a certain amount on a future date, with…

Q: When does a premium on bonds payable occur?

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: What is the relationship between bond price and interest rate? Describe in fully how this…

A: Bonds are referred to as those investment securities which are issued by companies as units of…

Q: What is the difference between a corporate bond and a registered bond?

A: Introduction: Bonds are an example of a loan. It is similar to an IOU and so when you buy bonds, you…

Q: How does accrued interest on a bond affect the purchase price?

A: Interest on bond is normally paid semi annually. When a bond is transferred in between these…

Q: How to journalize the purchase of bonds.

A: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: What is bond valuation? Give a detail explantion.

A: Answer

Q: describe the characteristics and terminology of bonds payable

A: Definition of Bonds payable: Bonds are issued by Government , corporations etc.

Q: What are the reasons for issuing warrants and convertible bonds?

A: A bond is a debt security issued by governments and business organizations to raise borrowing…

Q: Describe the nature of bonds and indicate the accounting for bond issuances.

A: Capital market:   A capital market is a place where the shares and bonds are traded. This helps a…

Q: What is the purpose of bond indenture?

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: What are the methods of determining interest on bonds?

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: Discus factors affecting value of a bond

A: Bonds are financial instruments which provides fixed returns to its holders. Bonds actually have a…

Q: How is the retirement of bonds recorded?

A: Retirement of bonds can be at maturity date or before maturity date. Accounting for bonds retired at…

Q: What is the accurate time for the submittal of the bond?

A: There are different instruments in which the investor can do investment. These instruments can be a…

Q: What are two important characteristics that determine the issuance price of a bond?

A: Following are the two characteristics that determine the issuance price of a bond: The riskiness of…