what two methods may a company use to allocate a premium or discount over the life of a bond issue?
Also, what is a call provision? Why do they includde call provisions on bond issues?
Bond best answer:
Answer by squadfix
a call provision allows the company to terminate the loans early by paying off the remaining cash flows ahead of schedule. they include these b/c insome cases it's beneficial to call the existing debt, and then reissue it at lower interest rates.
i'm not sure exactly what you mean by your first question. do you mean in terms of accounting? whether the bond is trading at a discount or a premium, the bond is amortized and its carrying value is shown on the company's balance sheet. from an accounting standpoint, it makes little difference whether it's at a premium or discount.
Bond
Strong Bonds retreat in Garmisch, Germany, January 2011
Image by US Army Africa
Couples listen at the Strong Bonds family retreat in Garmisch, Germany.
U.S. Army Africa photo by Sgt. 1st Class Kyle Davis
Enjoying an afternoon of snow and sun, laughing children and smiling adults scatter along the sledding slop, whizzing down the hill or watching others go by in Garmisch, Germany. This past weekend 22 U.S. Army Africa couples and their 42 children went to Edelweiss Lodge and Resort for a Strong Bonds marriage retreat.
"This weekend put our lives on pause so we could breathe each other in again," said Amiia Coffey, whose husband recently returned from deployment. "It let us step away from our crazy lives to focus on each other and how different we are."
Military couples need the skills to effectively communicate through the normal challenges of marriage and specific military challenges, such as deployment, said Chaplain (Col.) Jonathan McGraw. This weekend was added after the previous November session filled within 24 hours and as an addition to the budget was funded by the command, not Strong Bonds, said Chaplain (Lt. Col.) Clyde Scott.
"Army leaders feel it is very important for Soldiers to have a strong marital relations and that's why they fund this program," said McGraw.
Strong Bonds is a chaplain-led, fully-funded, Army-wide program training couples, families and single soldiers. As the instructor of the weekend seminar McGraw returned to familiar ground. He was part of the team stationed at Schofield Barracks in 1997 that pioneered the program, Building Strong and Ready Families, which functioned as the blueprint for today's Strong Bonds.
This was the fourth seminar at which the USARAF chaplains used Mark Gungor's "Laugh Your Way to a Better Marriage" as the center of the training, said Scott. At first he was skeptical of what looked like just another DVD seminar, but soon realized that Gungor uses humor to open discussion on taboo subjects such as sex in an objective and non-offensive way. Participants enjoyed the use of humor to discuss the topics of communication, Scott said.
"The guy spoke from a neutral standpoint; he wasn't just a man up there, he was going after both men and women," said Sgt. Maj. Jon Matthews. "I think that's the funny part. When he's going on talking and you look at your spouse and think, 'That's you!'"
The next USARAF couples retreat will be April 15-17. Strong Bonds programs are offered through the unit's corresponding Chaplain's office, said McGraw.
"It's a worthwhile experience," said Sgt. 1st Class Kyle Davis. "You go to a retreat and it doesn't give you all the answers, but it helps you continue. It's training for how to get past the rough spots you can't foresee."
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