Determining the Value of a Bond

1. Sinking Fund Schedules

1.1. Capital Savings.

1.2. Debt Retirement.

2. Debt Retirement and Amortization

2.1. Annual Bond Interest Payments.

2.2. Annual Bond Sinking Fund Payments.

2.3. Balance Sheet Liability.

3. Bond Basics

3.1. Bond Issue Date.

3.2. Bond Face Value.

3.3. Bond Coupon Rate.

3.4. Bond Market Rate.

3.5. Bond Redemption Price.

3.6. Bond Maturity Date.

3.7. Bond Selling Date.

3.8. Cash Price = PRI + AI

4. Calculating a Bond’s Yield

4.1. The Investor’s Yield

4.2. Premium or Discount = PRI − Face Value