Bond Terminology

Bonds are typically heavily tested on the FAR section of the CPA Exam. So, in the 11.01 - Bond Terminology video, Roger Philipp, CPA, CGMA, begins to lay the groundwork for understanding bonds by providing definitions of some key terms and concepts. It’s important to demystify and understand all the terms that may show up about bonds on the CPA Exam.
Some bond questions that Roger answers in the video are, "Why are some bonds issued at a premium? Are bonds debt or equity? Why are some bonds issued at a discount? How does the relationship between the bond yield and the bond coupon rate affect whether the bond is issued at a discount or premium?"
It's important to remember that market rate is the same as yield is the same as effective rate, and that the stated rate is the same as coupon rate is the same as face rate is the same as nominal rate. Also, carrying value equals book value equals reported amount. The basic formula for carrying amount is face value plus or minus
unamortized bond discount or bond premium. Don't understand term bonds, serial bonds, debenture bonds? No to worry, Roger explains it all in the video. By the end of this lesson, you will be ready to go into some numbers-heavy Bond Issuance Examples.
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Video Transcript Sneak Peek:
Welcome, welcome. Today we're going to talk about bonds and present value techniques because it's important to understand the concept of present value.
A bond is a very important area, very heavily tested and there's a whole bunch of different new ones, is a big word for me that relates to bonds. What is a bond? A bond is a borrowing agreement whereby the issuer of the bond promises to pay you, the purchaser of the bond, a certain amount of money after a certain period of time at a certain interest rate. That is what the purchaser of the bond or the issuer rather of the bond is promising to give to the purchaser.

[@brostom77]

i am saving my money by working an extra job to buy your software. I am coming for you Mr. Roger. You are an amazing teacher.

[@UWorldAccounting]

Thank you for the kind words, Bashir! We'd be honored to study with you! Please check out our Facebook page since we are currently having a promotion on our Premier and Elite Course Packages. You can also take advantage of our financing options here: www.rogercpareview.com/financing Hope that helps! #HelloCPA

[@jillianchiu]

I like your videos and how you present. I will take Roger CPA as my first choice for preparing the CPA exams.

[@UWorldAccounting]

Thanks Jill! We're so glad to hear and definitely look forward to studying with you! Until then--best of luck in your studies! :) #HelloCPA

[@smartyyoung7319]

Awesome! Studying intermediate financial accounting and came upon this video

[@UWorldAccounting]

That's great! We hope we could help solidify your understanding of this topic further! :)

[@kiukp9187]

Okay. this teacher is the one. I will buy this lecture for my REG.

[@UWorldAccounting]

Awesome. We can't wait to study with you, Krik! #HelloCPA

[@gustavlindell2753]

I fricking love this guy

[@myratemeras]

Hey is there any way i could get your videos? I am having a hard time doing this bond thing and i would like to learn more i am planning to take the board exam in 2021 and i find your videos very informative and fun as well.

[@UWorldAccounting]

Check out our website to take advantage of a free trial: www.rogercpareview.com/ - Thanks for watching! :)

[@keithclark1875]

Simply enjoyed your video. I will view your Facebook page I seen on a previous post. Grate job. Love this stuff.

[@UWorldAccounting]

Thanks Keith! We really appreciate it. Hope we can continue to be helpful in our other videos! :)

[@ambitoiusheart]

Countless likes for you. 👍 i like your way so much and explanation

[@UWorldAccounting]

Thanks! We appreciate it!

[@Jdaymer]

again thank you so much for this upload really great

[@UWorldAccounting]

It's our pleasure, Jeremy! Glad we're helping you out! :)

[@thetaxnerd7216]

Thanks Roger, I am studying for CPA Australia, I find your materials very very helpful (sometimes we are different but it is mostly the same) I even still remember your short videos since I was at Uni (you used to wear Green at the time) :) (i still remember TT, BPO, 75% or 90%) Just a quick question, I believe that CPA in the US now study IFRS, I am stuck in IFRS 19 (Employee benefits) or the US equivalent to that... What I really want is to understand the short-term benefit calculations and Long Service Leave Calculation (def i mean the liability side of things) if you can share a link here it would be very helpful Cheers mate

[@UWorldAccounting]

Hello Michael. Unfortunately, there aren't videos on this channel about IFRS 19, but the review course does have a video about it. In a nutshell, there are three differences between GAAP and IFRS regarding this topic: 1. Vacation pay and Sick pay that accumulate are required to be accrued. 2. The projected unit credit method is applied in calculations for defined benefit calculations (instead of the benefits-years-of-service method used for GAAP). 3. Actuarial gains and losses are recognized immediately in other comprehensive income. Hope this helps! Thanks for watching!

[@RealRickR]

"hope for a fair value question, you're not gonna to see it". Love it.

[@BoshraUSA]

You are amazing

[@UWorldAccounting]

Thanks Mohamad! We appreciate it!

[@amitshimshi]

thanks!

[@UWorldAccounting]

No problem, Amit! :)

[@alvi5331]

Ugh, I should have gone with Roger CPA lol

[@UWorldAccounting]

It's never too late! We do offer a fresh start discount if you're looking to switch review courses! :) Learn more about it here: accounting.uworld.com/cpa-review/cpa-courses/discounts/fresh-start/

[@megangrell9820]

"bondage"