CCFC 512- Final Exam Guide - Comprehensive Notes for the exam ( 38 pages long!)
28 Mar 2018
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Bonds and notes payable: bonds are a public contract while a note payable is a private contract between a company and the bank. The accounting is the same for both a bond and note payable: bearer bonds don"t really exist anymore. **defeasance will not be covered in this course. Inflation rates and treasury bills can cause changes in the market rate: straight line amortization will not be tested, for the effective interest rate, n will always be equal to the number of coupon payments remaining! If the bond is repaid before the maturity date you must bring the present value up to date at selling time. Often repayment before the maturity date results in a gain from extinguishment. **we will only be tested up until slide 40 (titled repayment before maturity date: It will cover chapters 13-15 and will be 20-25 multiple choice questions.
