When the fair market value of the asset is higher than its carrying value, then the asset impairment takes place. There is a requirement to test the assets for impairment so that the business does not report an overstated balance of the as...
You can use the formula below to calculate the Yield to Maturity value: YTM=(C+(FV-PV)/n)/(FV+PV/2) C= Annual Coupon Amount FV= Face Value PV= Present Value n= Years to Maturity The sample dataset contains 6 rows and 2 columns. Cells contain dollars in Accounting format and in P...
Once the maturity date of a bond is reached, there will be no remaining discounts or premiums to amortize, so the face amount of the bond will then match its carrying value. How to Calculate the Carrying Value of a Bond Carrying value is the combined total of a bond’s face value and...
Answer to: Discuss briefly how you, as a manager of a commercial bank, use financial derivatives to hedge some of the risks that your bank faces...
How to calculate cost of capital with tax rate - SolutionThe solution is as follows −Cost of debt=(Interest+(redemptionvalueofdebenture–issueprice)/maturityyear)(1−taxrate)(redemptionvalueofdebenture+issueprice)/2=(Interest+(redemptionvalueofdeben
In order to become a great financial analyst, here are some morequestions and answersfor you to discover: What is Financial Modeling? How Do You Build a DCF Model? What is Sensitivity Analysis? How Do You Value a Business? Accounting Crash Courses ...
Revenue lost from cancellations and downgrades: This is the money lost due to customer churn and downsell. You must only calculate recurring and lost revenue that spans a year. Most one-time fees, adjustments, and add-ons shouldn’t be included in this metric if you want to keep your ARR...
1. Why would a company wish to reduce its bond indebtedness before its bonds reach maturity? 2. Indicate how this can be done and the correct accounting treatment for such transaction. 1. When is a debt security considered impai...
Find out how to calculate the yield to maturity of a zero-coupon bond, and learn why this calculation is simpler than one with a bond that has a coupon.
Amortization is an accounting technique used to periodically lower the book value of a loan or intangible asset over a set period of time.