Effective Interest Bond Amortization
Formula
Interest Expense = Carrying Amount × Market Rate
Interactive Calculator
| Component | Value |
|---|---|
| Carrying Amount | |
| Market Rate(decimal) | |
| Coupon Payment | |
| Amortization Amount | — |
CategoryBonds
ComponentsAmortization Amount; Carrying Amount; Market Rate (decimal); Coupon Payment
ExampleCV × market rate vs coupon payment; difference = amortization
External Links
- Effective interest method — Wikipedia