Do Companies Get Repaid For Bond Issue Costs? Bond issue costs are not treated as outright expense but amortized over the life of the bond similar to that for discount on bonds payable. Bond issue costs are conceived as cost of borrowing and therefore will increase interest expense. How does a company pay back a
How Fed Rate Hike Affects Corporate Bonds? When demand for bonds declines, issuers of new bonds are forced to offer higher yields to attract buyers. That reduces the value of existing bonds that were issued at lower interest rates. Do interest rates affect corporate bonds? There is an inverse relationship between market interest rates and
What Does Commercial Paper Mean? What does commercial paper mean? Commercial paper is a money-market security issued (sold) in the commercial paper market by large corporations to obtain funds to meet short-term debt obligations (for example, payroll) and is backed only by an issuing bank or company promise to pay the face amount on the