Beruflich Dokumente
Kultur Dokumente
Business model is to hold the financial asset in order to collect contractual cash flows on specified dates
The contractual cash flows are solely payments of principal and interest on the principal amount outstanding
SALE
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METHODS OF AMORTIZATION
a. STRAIGHT LINE METHOD amortized equally based on remaining term of bond
b. BOND OUTSTANDING METHOD applied to SERIAL BONDS, amortized by multiply the premium/discount with the computed
fraction (see book pp.775-776)