Calculation+of+Interest-discount - Effective interest rate...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Calculation of Interest Expense When Bonds Are Issued at a Discount Interest expense using straight-line amortization: cash payment for interest + discount amortization Interest expense using effective-interest amortization:
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Effective interest rate x book value of bonds at the beginning of the interest-payment period (note: discount amortization = interest expense - interest payment)...
View Full Document

This note was uploaded on 07/08/2011 for the course ACG 4133c taught by Professor Ajinka during the Summer '08 term at University of Florida.

Ask a homework question - tutors are online