acct2001 at LSU

9. Borrowing Cost

in Chapter 11 (Video 9 of 11)
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With bonds selling at discounts and premiums, how do we find out what the real cost to borrow actually is? Well, there are two methods and we'll give both a shot.

This Video Mentioned Some Formulas

Cash Out
– Cash In
Cost of Borrowing (Bonds)
Cash Payments
– Premium
+ Discount
Cost of Borrowing (Bonds)

The Rest Of The Videos

1 Interest Bearing Notes 8:26
2 Non-interest Bearing Notes 6:16
3 Contingencies 5:58
4 Intro to Bonds 10:04
5 Discounts and Premiums 7:34
6 Selling at a Discount 7:15
7 Selling for a Premium 8:11
8 Amortization 21:42
9 Borrowing Cost
You are here. 		6:33
10 Interacting with Market Rates 5:30
11 Retiring Bonds 9:54
Chapter 12 →

Chapter 11 Practice Problems

Click Here to View All Chapter 11 Problems at Once View
1 Bond Theory Multiple Choice Easy
2 Liability Classification Easy
3 Bond Issue Prices Moderate
4 Contingent Liabilities Moderate
5 Contingent Liabilities - Warranties Moderate
6 Coupon and Market Rates Multiple Choice Moderate
7 Bond Amortization Hard
8 Bond Retirement Hard
← Chapter 10

Did I miss anything in Chapter 11?

What Did I Miss?