Video: Bond Calculation

In this lesson, delve into the nuts and bolts of bond calculations with Nick guiding you through the essentials. You'll become familiar with the accounting treatment for bonds payable as a long-term liability, from issuance to amortization to interest over time. With Nick's clear explanations, grasp how bonds are recorded at face value and adjusted to present value by adding premiums or subtracting discounts. Learn the significance of bond denominations and how pricing is quoted relative to par value. Nick also deciphers the intricacies of coupon rates, bond indentures, and the tricks involved in calculating bond interest payments, especially when dealing with semiannual payments. This lesson is a bedrock for understanding the financial mechanics behind bonds and how they are reflected in accounting practices.