ACCT 284 at Iowa State University

5. Amortization

in Topic 11 (Video 5 of 8)
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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 Intro to Bonds 10:04
2 Discounts and Premiums 7:34
3 Selling at a Discount 7:15
4 Selling for a Premium 8:11
5 Amortization
You are here. 		21:42
6 Borrowing Cost 6:33
7 Interacting with Market Rates 5:30
8 Retiring Bonds 9:54
Topic 12 →

Topic 11 Practice Problems

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1 Bond Theory Multiple Choice Easy
2 Bond Issue Prices Moderate
3 Coupon and Market Rates Multiple Choice Moderate
4 Bond Amortization Hard
5 Bond Retirement Hard
← Topic 10

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