Class Notes (838,382)
Canada (510,868)
Brock University (12,137)
Accounting (274)
ACTG 1P12 (42)

Chapter 8 Notes - Class.docx

5 Pages
Unlock Document

Norman Chasse

Chapter 8Financing a Business with DebtBonds A contract or written agreement that allows a company to borrow a specific amount of money at specified terms o Interest o Principal o Repayment datesCan be exchanged on the open marketUnsecured bonds debenturesSerial bondsmatures periodically over timeTerm bonds mature all at the same time Key TerminologyFace value o refers to the actual principle amount of the bond ie amount to be repaid maturityStated Rate or Coupon Rate or Contract Rate or Face Rate o Rate of interest paid on the bond to the bondholders ie sets the cash payment o PYNTFace Value x Stated RateMarket Rateo Rate demanded by investors to lend money to the company given similar risks terms etc o Sets the effective rate or discount rate used to determine the Net Present Value of future payments reccl paid from the bondPrice of the Bonds o Present value of future payments discounted at the market rateWhen the price of the bond is equal to its face valuesold at par When the price of the bond is greater than the face valuesold at premium When the price of the bond is less than the face valuesold at discount
More Less

Related notes for ACTG 1P12

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.