When a government or corporation issues a bond, it does so with a specific par value and interest rate. Once in the market, those values don’t change; however, the value of a bond can change depending ...
What Is a Deferred Interest Bond? A deferred interest bond, also called a deferred coupon bond, is a debt instrument that pays all of its interest that has accrued in the form of a single payment made ...
When savings bonds mature depends on the series of bond held. The maturity period for Series I and EE bonds is 30 years, while Series HH bonds mature after 20 years. For example, a Series EE ...
Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University. Wanan Yossingkum / Getty Images An unamortized bond ...
A municipal bond’s embedded call option allows the issuer of the bond to “call” (i.e., pay back) the debt at a date prior to the bond’s final maturity, which allows the issuer to reduce the cost of ...
Savings bonds, issued by the U.S. Treasury, represent a safe and secure long-term investment. Each bond's value is influenced ...
Carrying value equals bond face value plus unamortized premiums or minus discounts. Calculate it using face, current term, and premium or discount per year. Investors use carrying value to assess bond ...