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Bond issuers
Effective interest method (yield
to maturity, constant rate,
level yield)
bond accounting amortization software
Related pages:
Bond
purchaser pages:
Effective interest method
Straight line method
Software to
calculate monthly and yearly
• Premium amortization
• Discount accretion
• Issuance cost amortization
• Book value determination for
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Municipal bonds
• Corporate bonds
• Governments
• Notes
• Bills
• Agencies
• Virtually any premium, discount instrument
• Multiple files within a portfolio
• Multiple portfolios
• Calendar and fiscal year reporting
When applicable, the software will
also account for and produce
detail audit schedules
reflecting:
• Early redemptions and
• Partial redemptions and
• Rate changes at any time
Amortize and
account for all
bonds the same
time
• Effective interest rate calculations for
• Fixed rate bonds
• Variable rate, step bonds,
adjustable, floating rate
• Zero rate
•
Convertible
The software
calculates a
blended,
constant rate
from which to
derive monthly
recognition
• Callable
- with a call
price
• Callable - without a price
Use the software to
•
Amortize your
bonds
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Amortize client
bonds
Many of our clients are CPA,
accounting
firms and financial advisors
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Special features
• Issue costs
Amortize issuance
costs only
Amortize premiums
and discounts only
Amortize
premiums, discounts and issue
costs
for a month, for a year
• Callable bond continuation if the bond is not
called
Premium,
discount, issue cost recognition is
finalized as of the call date
Coupon
interest continues to the bond's
maturity date
• Variable rates and
Rate changes due to any reason
Recalculation
of the effective
interest rate
Coupon
interest calculation at the new
rate as of the change date
• Reductions to Par
Early call, redemption
Partial call, redemption
Periodic reductions
Other reductions to
par for any
reason
• Group totals
Group bonds
and obtain recognition totals by
as many different categories as
desired
•
Export
Copy bonds,
calculations and totals for
desired period and paste to a
spreadsheet
Automatically
create an Adobe pdf file for
permanent storage
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Effective
interest method amortization for
• Fixed
rate bonds
• Zero rate
• Variable
rate, steps, adjustable,
floating rate
Amortize
issue costs for
• Regular bonds
• Callable and non-callable bonds
• Callable, with or without a call price
• Convertible bonds
Many of our clients are
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CPA, accounting firms
•
Auditors
• Asset management companies
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Financial advisors
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• Level yield
•
Effective
interest method
under GAAP, FASB
• Constant yield
• 360/365/366 days in a year basis |
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Municipal, corporate, original issue, secondary
market,
government,
notes, bills,
agencies
Virtually any type of premium, discount financial instruments
• Fixed
rate
• Zero rate
• Variable
rate, steps
• Adjustable
• Floating
• Rate changes due to any reason
Recalculation
of the effective
interest rate
for remaining
term
•
Convertible
Including the
calculation of a
constant rate to
determine the
effective
interest rate
• Early call, redemption
Full
recognition of
premium or
discount balance
• Partial call, redemption
Accelerated,
proportionate
recognition of
premium or
discount on the
day of reduction
to par |
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Calculate for
current and
prior reporting
periods
• Amortize your bond issue costs
• Amortize client bonds (many of our
clients are
accounting firms
and financial
advisors) |
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View, print,
export results
to Excel and
other
spreadsheets
• Issuance cost
recognition and
balances
• Totals for all bonds |
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Rate change
Recalculate
effective rate
over
remaining term
due to a rate
change
Calculate coupon interest over
remaining term
at the new rate
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Par reduction
Accelerated premium, discount recognition for
reduction amount
to par due to
Partial sale
Partial recall
Partial
redemption
Other reduction
to par
Also includes early sale, redemption,
call date to
recognize
deferral balance
in full
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Generate
group and
portfolio totals |
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Annual recap
for audit and
examinations |
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Automatically
generate
lifetime bond
amortization
schedules |
• Early call, redemption date
- Automatic recognition of issue cost deferral balance in full
• A complete accounting package
- Issuance cost amortization
- Discount accretion
- Premium amortization
- Interest accruals at the coupon rate
- Journal Voucher posting source document
- General ledger posting files
• Special features
- Lifetime issue cost amortization schedule
- Complete detail support for reporting totals
- Great at auditing time!
- Group, track, account for bonds by Issue
Accrual Basis Accounting
Our software accounts for bonds using the Accrual Method of accounting.
Coupon interest is calculated monthly, when interest expense is incurred, regardless of when it is distributed.
As such, our effective rate might differ from a cash basis YTM at the 5th to 6th decimal place.
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