微觀經(jīng)濟(jì)學(xué)non-currentliabilities(參考版)
2024-08-13 10:05本頁面
【正文】 Bond discount Number of interest periods LO9 54 55 Chapter 16: ? Questions , , , , , , ? , , , ? , , , ? , , ? , , Suggested questions to ensure your lecture understanding 。 Total debt Total assets = Times interest earned 247。 = $5000。 $5000 x 10) $50 000 Add: Bond discount ($100 000 $92 639) 7 361 Total cost of borrowing $57 361 ? Balance sheet (end 1st yr) ? Balance sheet (end 2nd yr) Noncurrent liabilities Bonds payable $100 000 Less: Unamortised discount 4 $ 3rd yr, 4th yr, so on so forth ? Balance sheet (beginning 6th yr) Noncurrent liabilities Bonds payable $100 000 Less: Unamortised discount 0 $100 000 Noncurrent liabilities Bonds payable $100 000 Less: Unamortised discount 5 $ Issuing Bonds at a Discount (cont39。 Sons Australia, Ltd BOND BASICS ? Bonds are interestbearing notes payable that are issued by panies, universities and government agencies ? They are in small denominations (usually a thousand dollars) ? To obtain large amounts of noncurrent capital, management usually must decide whether to issue ordinary shares (equity financing) or bonds (debt financing) PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 2 LO1 Why issue bonds? ? Bonds have the following advantages over ordinary shares: – Shareholder control is not affected – Tax savings result – Earnings per share may be higher ? The major disadvantages of bonds – Interest must be paid on a periodic basis – Principal (face value) must be repaid at maturity PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 3 Types of bonds ? Secured and unsecured bonds –Secured bonds will have specific assets of the issuer pledged as collateral for the bonds –Unsecured bonds (or debentures) are issued against the general credit of the borrower ? Term bonds are bonds that mature at a single specified future date PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 4 Types of bonds continued ? Registered and bearer bonds –Registered bonds are bonds issued in the name of the owner with interest payments being made to the bondholder of record –Bearer (or coupon) bonds are bonds that are not registered to the owner – this means that holders of the bearer bonds must send in coupons to receive interest payments PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 5 Types of bonds continued ? Convertible and callable bonds –Convertible bonds can be converted into ordinary shares at the bondholder’s option –Callable bonds can be retired at stated dollar amount prior to maturity at the issuer’s option – most corporate bonds are issued with a call feature PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 6 Issuing procedures ? Approval by both the board of directors and shareholders is usually required ? In authorising a bond issue, the board of directors must state –No. of bonds to be authorised –Total face value –Contractual issue rate PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 7 Issuing procedures continued ? Face value is amount of principal the issuer must pay at the maturity date ? Contractual (or stated) interest rate is the rate used to determine amount of cash interest the borrower pays and the investor receives ? Bond indenture is a legal document setting out the terms of the bond issue ? Bond certificates provide information such as name of issuer, face value, maturity date, contractual interest rate PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 8 Bond trading ? Corporate bonds can be traded on the national securities exchange ? Thus, bondholders may convert their holdings into cash by selling bonds at current market price ? Bond prices are quoted as a percentage of the face value of the bond (usually $1000) ? An entity only makes journal entries when it issues or buys back bonds, and when bondholders convert bonds into ordinary shares PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 9 Determining the market value of bo
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