[Tia]

I am sinking in BONDS!!!!! Study tips needed to conquer this breast – I am about to remove every strain of hair from my head. PLEASE anyone

FAR 83
AUD 87
REG 82
BEC score pending

[jincredible]

Conquering breasts sounds fun! But in all seriousness, practice is the key. The more questions you do, the more of a grasp you're going to have with bonds.

FAR - 88
AUD - 98
REG - 87
BEC - 83

[Tia]

*strand…….

I have done that but just not getting it.

FAR 83
AUD 87
REG 82
BEC score pending

[junpark]

What about the Bonds are you not getting? Discount/Premium? amortization? I remember when I first learned Bonds, I thought the professor was teaching in French. He might have been because I still have trouble. I had trouble when they were saying “the bond was issued at 101” (which is premium) or “the bond was issued at 97” (which means discount). I guess Becker's Tim Gearty's quote might help. “You're always taking the value to the FACE value” which is what the value that is on the FACE of the bond, what you will pay back at the end of the period. Face Value x Stated Rate (what the bond says will pay each period) = Cash/Interest Paid. This number is compared to the INTEREST EXPENSE=PV of the bond from day 1. multiplied by the EFFECTIVE INTEREST RATE (in most problems, it's given). The effective interest rate is also used in DISCOUNTING the bond to the present value. the difference between the cash paid and the interest expense is the amount amortized. The amount amortized is either added or subtracted to the discounted/premium bond value. Basically if your bond is a discounted bond, you GROW your bond value to face value. if you have a discounted bond, that means the effective interest rate is greater than the stated rate. if you have a premium bond, that means you reduce it to the face value. it also means your stated rate is greater than the effective rate. i think once you get it, you'll never forget it. hang in there!

[Tia]

Thank you very much. Was getting confused with the amortization – I have noted your explanation in my notes.

FAR 83
AUD 87
REG 82
BEC score pending

[Anonymous]

Wait let's not get off topic here — how can I conquer some breasts?

[Tia]

**holds head** How are you progressing with FAR?

FAR 83
AUD 87
REG 82
BEC score pending

[Author]

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