Business Accounting Discussion
Share your understanding of bonds as a form of financing a corporation. Discuss how the price of a bond is determined and provide an example of each of the following:
- A bond issued at a premium,
- A bond issued at par,
- A bond issued at a discount.
Additionally, provide the journal entry that would be made to record each of your bond examples as well as the first journal entry that would be made to amortize each of the bond's premium and discount. What would be the Net Bond Value after the first amortization entry for each of your example bonds? Also comment on the circumstances upon which a bond may be callable and when a bond may be convertible.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.