List and Describe the 3 Bases on Which Bond Yields

question 181

Essay

List and describe the 3 bases on which bond yields are quoted.Use a $1,000 bond paying $100/year for 10 years and currently selling in the market for $900 as the basis for your example.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards providing a global framework for how public companies prepare financial statements.

Ownership Of Goods

The legal right or title to possess and use goods, typically transferring from seller to buyer upon payment.

Specific Identification

An inventory valuation method that tracks the cost of individual items or batches of items throughout the purchasing and sales process.

FIFO Method

A method of inventory costing that assumes the first goods purchased are the first goods sold, affecting the cost of goods sold and ending inventory valuation.