Tag Archives: Bonds


The Basics And Pricing Of Debt Securities (Bonds)

When a company is fortunate enough to have excess cash sitting around it may invest in debt securities that are either issued by the government or other private entities. Similarly, a company in need of financing to improve its cash position may find it necessary to issue debt to investors who are interested in generating interest income in addition to any potential discount they can benefit from based on the face value of the bond.


Accounting for Bonds

This is a continuation of “The Basics and Pricing of Debt Securities” post. If you have not read that post / are unfamiliar with how bonds are priced, please do so before reading this article.