How much do corporate bonds cost?
How much do corporate bonds cost?Note: I know next to nought about corporate bonds; or should I say-so, much of what I know are in articles similar to World Book,
and, Wikipedia
http://en.wikipedia.org/wiki/Bond_%28fin...
I understand that you buy a bond, and they (generally) yeild interest until they evolve; but according to this Wikipedia article (and others from even older sources), in attendance are "stripped" bonds, and it hints that bonds can be sold below face expediency?
How far below face meaning? Could a corporation, with, let's speak,
$800 000 in assets,
put on the market 100 000 of $20 bonds;
for, say, $5 respectively
(or 300 000 bonds of $20, for $2 to $10 each)?
Thanks for any help.
Answers: The price of the bond is a function of interest rates. At the time the bonds are originally issued, they are - commonly - priced at face expediency. After they are issued, they may sell at a premium or discount depending on the verbs.
Imagine a bond that was issued tons years ago with a 4% interest rate. Most empire would not pay full attraction for that bond as they can get a better yield elsewhere. In writ to get a open market yield, the bond trades at a discount.
Accounting put somebody through the mill?
what accounts would be affected if a company purchased composition and other supplies ON ACCOUNTAnswers: Accounts payable will increase (credit)
Stationary and printing (income statement) increase (debit)
accounts payable and supplies expense
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