| Face Value |
| * Annual Percentage Rate |
| * (Months Outstanding / 12) You could use (Days Outstanding / 360) instead of months |
| Interest Expense (or Revenue) |
| Maturity Value = Principal + Interest |
| Bond Face Value |
| + Unamortized Premium |
| – Unamortized Discount |
| Bond Carrying Value |
| Bond Payment Amount = Face Value of the Bond * Annual Coupon Rate / # of Payments Per Year |
| If a bond pays semi-annually, then there are two payments per year. If it's annual, then it's just 1 payment per year. |
| Bond Interest Expense = Carrying Value * Market Interest Rate |
| Bond Face Value * PV$1(i,n) |
| + Payment Amount * PVOA(i,n) |
| Bond Selling Price |
| When calculating the selling price, be sure to use the Market Rate for i. |
| Cash Out |
| – Cash In |
| Cost of Borrowing (Bonds) |
| Cash Payments |
| – Premium |
| + Discount |
| Cost of Borrowing (Bonds) |
| Bond Carrying Value |
| – Cash Paid to Retire |
| Gain / Loss on Retirement of Bond |