Category Archives for Bonds

Introduction to Bonds

A bond is a liability companies use when a large amount of cash is needed. Rather than go to a bank or other lender, a company will issue bonds and sell them to the public. By selling bonds on the open

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Simple Interest Calculations

Most interest calculations that you will encounter are simple interest calculations. In a simple interest calculation, interest is calculated for a defined period of time based on the outstanding balance.

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Present Value and Bond Issue Prices

Let me ask you a question: Would you give someone $40,000 today to receive $40,000 back in 10 years? I imagine that your answer is most likely NO. Why not? There are probably a number of reasons.You

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