How Do You Calculate Discount On Bonds Payable?
The bond is trading at a discount of $1,000 – $958.69 = $41.31 since the market price is below the par value. As a result, the bond discount rate is $41.31/$1,000 = 4.13 percent. Do you reduce or add discount from bonds payable? Discount on bonds payable is a counter account to bonds payable that […]
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