Selling for a Premium - ACCT 284, Iowa State University

in Topic 11 (Video 4 of 8)

8 minutes

When a bond's coupon rate is higher than the market rate, that bond is going to sell for a premium. We'll calculate that premium in this video.

This Video Mentioned Some Formulas

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.

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

	Click Here to View All Topic 11 Problems at Once	View
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