Another great lecture Professor. Can't even begin to convey to you how much of an asset this is Professor. Never really understood this stuff until I stumbled upon your vids. Now I'm actually really beginning to like accounting. Cheers1
Another great lecture that is helping me immensely with my online ACCT 221 class!! BTW is the "Pinkman" handout in relation to Breaking Bad? Too funny!!
Professor Krug, two quick questions! I understand how you calculated the total amount of interest that the bond issuer pays to bond holders ($472,500) as demonstrated at 15:35. In fact, its instinctive. But I got to thinking (always dangerous for me!)…isn’t the semi-annual interest payment a kind of annuity and if it is, couldn’t I use table B-3 to calculate the present value of the annuity amount? I tried using the table but came up with a wildly different number even though I interpolated the factor.
No, an annuity is compound interest while the bond is simple interest. Plus the present value of an annuity is not like the principle of a loan, or par value of a bond, which is paid back. There are several differences.
Another great lecture Professor. Can't even begin to convey to you how much of an asset this is Professor. Never really understood this stuff until I stumbled upon your vids. Now I'm actually really beginning to like accounting.
Cheers1
Thank you, you made so much simpler to understand the concept of issuing bonds at a discount
Another great lecture that is helping me immensely with my online ACCT 221 class!! BTW is the "Pinkman" handout in relation to Breaking Bad? Too funny!!
Yep!! The trend continues with future bond handouts!
LOL! I just wrote a comment about Quetzals on the last video :)
really enjoy his teaching , he is so funny too :)
At 52:25, i believe on December, 31, 2013, the unamortized discount is 108282 instead of 108283.
Yea, I caught that too!
It was 108,282.54 which rounded up to 108,283.
Professor Krug, two quick questions! I understand how you calculated the total amount of interest that the bond issuer pays to bond holders ($472,500) as demonstrated at 15:35. In fact, its instinctive. But I got to thinking (always dangerous for me!)…isn’t the semi-annual interest payment a kind of annuity and if it is, couldn’t I use table B-3 to calculate the present value
of the annuity amount? I tried using the table but came up with a wildly different number even though I interpolated the
factor.
No, an annuity is compound interest while the bond is simple interest. Plus the present value of an annuity is not like the principle of a loan, or par value of a bond, which is paid back. There are several differences.
I liked the old music better...just saying!!
I wish final exam questions are as simple as those. 😟
I wish youtube would allow me post an excel spreadsheet for Tungston for people to see. Excel makes the table a lot easier.
Hello, Mr Krug, the page u give us in this lecture is showed broken when i try to visit.
Hi, The link works for us: facebook.com/davekrugvideoinstructor
Thank u so much!
whew one of the most confusing ones for me.