I understand we have to consider the bond’s yield at the time of issuance, for calculating interest expense and book value. But what is the logic behind that? Wont they change over time with the change in the market interest rates?
I understand we have to consider the bond’s yield at the time of issuance, for calculating interest expense and book value. But what is the logic behind that? Wont they change over time with the change in the market interest rates?