bond transactions


D

Dave

I purchased a commercial bond at a premium because the
coupon rate is higher than current interest rates. As
interest is received, I need to amortize the bond premium
against the interest received and reduce the cost of the
bond for the amount of the premium amortized. Can this
be done in Money 2003?
 
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C

Cal Learner-- MVP

I purchased a commercial bond at a premium because the
coupon rate is higher than current interest rates. As
interest is received, I need to amortize the bond premium
against the interest received and reduce the cost of the
bond for the amount of the premium amortized. Can this
be done in Money 2003?
Not automatically. You can enter Return Of Capital transactions for
the amortized amounts, but Money will not calculate the amount.
Money will reduce the basis.
 
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M

Michael Gordon

FWIW, you don't have to amortize - you can elect to take a loss when the
bond matures or is sold.
 

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