a simple questino, when par > cost, is it a discount need to amortized ? Thanks.l
Yes it will be added in interest expense. Debit Interest Expense Credit Discount on Bond Credit Cash
I know this was all level 1 stuff but i think i forgot it all. in the example above if par is 10,000, cost was 9,000 YTM 5%, coupon 4% , how would you calculate the the different charges. A quick recap would be greatly appreciated.