Interest expense calculated at the actual interest rate? = book value of the initial bond? × real interest rate
What is the book value of the initial bond? = face value+unamortized premium? Or? -Discounts not yet amortized
If it is a one-time debt service bond, the accrued interest will increase the book value of the bond and will be deducted when calculating.
Accrued interest at par? =? Face value × coupon rate
Extended data:
1. The actual interest income of each period changes with the book value of long-term debt investment; The premiums and amortization of premiums in each period are increasing year by year. This is because, in the case of buying bonds at a premium, the book value of bonds (unamortized premium part) decreases with the distribution of bond premium.
Therefore, the calculated accrued interest income gradually decreases, and the interest calculated by coupon rate in each period is greater than the accrued interest income in each period of bond investment, and the difference is the premium amortization of each period of bonds, so the premium amortization in each period gradually increases.
Amortized amount of current profit and loss = accrued interest calculated at face value? -Interest charges at the real interest rate
Amortization amount of current surplus and discount =? Face value × coupon rate? -(face value+unamortized premium) × actual interest rate
2. In the case of buying bonds at a discount, as the book value of bonds increases with the allocation of bond discount, the calculated accrued interest income will gradually increase, and the accrued interest income of bond investment is greater than the interest calculated according to coupon rate in each period, and the difference is the amortization amount of bond discount in each period, so the amortization amount of discount in each period will gradually increase.
This discount amortization amount = interest expense calculated according to the actual interest rate? -Accrued interest on face value
Amortization amount of current discount = (face value-unamortized discount) × actual interest rate-face value× coupon rate.
Baidu Encyclopedia-Real Interest Rate Method