Bonds Effective Interest Method - Discount

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  • Опубліковано 10 лют 2025
  • This video explains how to calculate a bond that sells at a discount. It shows the corresponding journal entries on the original sale and interest payments. It also shows how to prepare the amortization table and explains what the numbers represent.

КОМЕНТАРІ •

  • @saddestdayever1276
    @saddestdayever1276 3 роки тому +2

    Oh my god! This was EXTREMELY freaking helpful! I was so, so lost trying to understand this stupid effective-interest rate method from my book and lectures but it made absolutely no sense... until I found your video! Thank you, thank you and thank you! Your help and assistance is really appreciated, sir!!!

  • @Maggzmay
    @Maggzmay 7 місяців тому

    Thank you so much for explaining this kind sir. You definitely have found your calling. Who knew someone could be so excited over math?

  • @aufa9471
    @aufa9471 3 роки тому +1

    I'm self-studying finance and your videos help me lots!

  • @kaylasharp5919
    @kaylasharp5919 5 років тому +3

    Thank you! I’m getting my Masters and am currently taking Accounting. Your videos have really illuminated the concepts our professor quickly went over in the course.

    • @mattfisher64
      @mattfisher64  5 років тому +1

      Kayla Sharp I also have vídeos under Online EdVantage in UA-cam. Look under the playlists. Good luck

  • @mindyabusiness90
    @mindyabusiness90 4 роки тому +3

    I think I'm in love with you! I worked on this homework for HOURS and your youtube video helped me get 100%. Thank you for making this easy!! Saving your name for later!

  • @nicholasmcdowell9294
    @nicholasmcdowell9294 8 років тому +2

    I am taking Intermediate Accounting right now and you explain this very well and it clears it up for me. My professor has explained it, but doesn't take the time to go through it as well as you. Thank you!

  • @alial-qasim2453
    @alial-qasim2453 2 роки тому

    My fav channel since years as always, thank you prof.

  • @ayakaw4409
    @ayakaw4409 8 років тому +4

    Very very very good. Your 16 minute video saved me hours of studying!

  • @Abdallah86F
    @Abdallah86F 7 років тому +1

    I had issues in bonds accounting understanding but after this class it is 100% clearThank you for this

  • @charlescc1000
    @charlescc1000 8 років тому

    This video is very helpful. It explains the concept step by step in a way that makes it easily understood.

  • @zikunmeng3519
    @zikunmeng3519 7 років тому +1

    this is the best in explaining the amortize bond problem videos

  • @RoseyN930
    @RoseyN930 4 роки тому

    Cannot thank you enough for your video...it's helped me so much!

  • @alexanderbloomingdale6677
    @alexanderbloomingdale6677 8 років тому +4

    so helpful, way better than how my professor explains it

  • @Dennis_iz_Germanii
    @Dennis_iz_Germanii 5 років тому

    Thank you very much from Germany, wish our professors would explain the same way you do!

  • @suzettejones135
    @suzettejones135 6 років тому

    this video was very detail. step by step thank you

  • @joystickks73
    @joystickks73 6 років тому +1

    Thank you! This video is extremely helpful.

  • @AirotkivViktoria
    @AirotkivViktoria 8 років тому +1

    Very well explained! Thanks a lot!

  • @abukhalil937
    @abukhalil937 4 роки тому

    Thank you
    You helped me so much

  • @sadafm8757
    @sadafm8757 8 років тому

    Very helpful videos. Thank you!

  • @travispace6658
    @travispace6658 4 роки тому

    I aint feel like this in a long time

  • @thomaswestwater6297
    @thomaswestwater6297 5 років тому

    Thank you!

  • @alinazainab2713
    @alinazainab2713 8 років тому +1

    its 4806! and amazing loved your work

  • @jameswillis5296
    @jameswillis5296 4 роки тому

    1:00 Isn't this company 'buying' a bond which causes them to have debt? Selling a bond would give you a receivable, or am I mistaken

  • @SeeTohWaiKay
    @SeeTohWaiKay 5 років тому

    Assuming a company issued a bond with the same scenario as the video, will the company really receive $92,923 at the start of the bond issue? Meaning the company is telling the buyer of the bond to give it $92,923 for a $100,000 bond at the start. Am I correct?

  • @cypeters1
    @cypeters1 7 років тому +1

    great stuff, just hard to see the board...other than that you have a great way of explaining, thank you.

  • @waqasahmad6111
    @waqasahmad6111 4 роки тому

    sir which formula you used for calculating discount factor . we use ( 1+12%)^N

  • @josephinengugi2475
    @josephinengugi2475 5 років тому

    Thank you❤️

  • @sohandandekar8976
    @sohandandekar8976 4 роки тому

    Which book are you using?

  • @SeeTohWaiKay
    @SeeTohWaiKay 5 років тому +1

    Is anyone able to explain why for the 10,000 you use the PV of annuity and for the 100,000 you use the PV of a single amount?

  • @pmppurduemusicproducers8983
    @pmppurduemusicproducers8983 8 років тому

    real nice

  • @alial-qasim2453
    @alial-qasim2453 2 роки тому

    At the discount example? isn't it supposed to be that (contact value)*(contract rate%10) and (market value)*(market rate%12)

  • @1weirddoe571
    @1weirddoe571 5 років тому

    Is this same as "constant yield" method?

  • @طالبالعلم1990
    @طالبالعلم1990 9 років тому

    thank you

  • @youssefhenien7959
    @youssefhenien7959 6 років тому

    how did he get the value of 3.0373? I still dont get it, if anyone can explain it, it'd be very much appreciated!

    • @TheHotPantsBadBoy
      @TheHotPantsBadBoy 5 років тому

      www.investopedia.com/terms/p/present-value-annuity.asp
      www.investopedia.com/terms/p/presentvalue.asp

  • @jamex4189
    @jamex4189 3 роки тому

    What if I don't have a pv table?

  • @jeffimas4559
    @jeffimas4559 6 років тому

    Has anyone seen a problem like this?
    A municipal bond has a face value of $1000. interest of $35 is paid every 6 months. The bond has a life of 10 years. What is the effective rate of interest on the bond? is this rate adjusted for inflation? What is the municipal government's cost of capital for the for this bond? Estimate the rate, considering all levels of government.
    The book is: Engineering Economic Analysis 13th ed
    I cannot for the love of me figure out how to attack this problem. can't even find a solution for it on chegg. Smh.

  • @NiNi-jk6np
    @NiNi-jk6np 4 роки тому

    There is a small mistake in your video. Beginning total Amount Discount 6,077 - 1st year-end discount amount 1,271 = 4,806 not 4,807!! But using the right amount 4,807 leads to a ending amount discount to 4 rather than 0.

  • @officehomecleaningramos6988
    @officehomecleaningramos6988 9 років тому

    Thank you