acct2110 at Auburn

8. Amortization

in Chapter 9 (Video 8 of 11)
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As a bond approaches maturity, its carrying value approaches its face value through a process called amortization. We're going to do two amortization tables so you can see how easy they are.

This Video Mentioned Some Formulas

Bond Face Value
+ Unamortized Premium
– Unamortized Discount
Bond Carrying Value
Bond Interest Expense = Carrying Value * Market Interest Rate

The Rest Of The Videos

1 Interest Bearing Notes 8:26
2 Non-interest Bearing Notes 6:16
3 Contingencies 5:58
4 Intro to Bonds 10:04
5 Discounts and Premiums 7:34
6 Selling at a Discount 7:15
7 Selling for a Premium 8:11
8 Amortization
You are here. 		21:42
9 Borrowing Cost 6:33
10 Interacting with Market Rates 5:30
11 Retiring Bonds 9:54
Chapter 10 →

Chapter 9 Practice Problems

Click Here to View All Chapter 9 Problems at Once View
1 Bond Theory Multiple Choice Easy
2 Liability Classification Easy
3 Bond Issue Prices Moderate
4 Contingent Liabilities Moderate
5 Contingent Liabilities - Warranties Moderate
6 Coupon and Market Rates Multiple Choice Moderate
7 Bond Amortization Hard
8 Bond Retirement Hard
← Chapter 8

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