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Companies' resources are financed either through debt or equity financing. Often times, if needed capital cannot be obtained through the issuance of stock or traditional
Companies' resources are financed either through debt or equity financing. Often times, if needed capital cannot be obtained through the issuance of stock or traditional debt financing from financial institutions, needed capital is raised by the issuance of bonds. What is a bond, and how much will a bond sell for? When will a bond sell for par, a discount, or a premium? What does a bond discount/premium represent? Discuss two methods of amortizing a bond discount and premium. What does the amortization process represent?
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