10 LIABILITIES
Accounting for a bond premium: an illustration. a. Bond premium: a reduction in the cost of borrowing. b Amortization of the premium . 3. Bond discount and premium in perspective. 4. The concept of present value. a The present value concept and bond prices. 5. Bond prices after issuance - see Case in Point (page . 45. 7) a. Volatility of short ... ................
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