@smaccyl – The yield is the same as the market rate, it's just another name for it. Think of it like, what is the market currently yielding..
The stated rate, which is the rate that is on the bond is my step number 1. You use this to find the payment of cash that MUST be paid. Stated rate multiply by face value = payment in cash.
Step number 2: Now we need to know our interest expense, which will be found by taking your yield or market rate, multiplied by the carrying value of the bond, which could be higher, lower or on par with the face value. J/E:
DR: interest expense xx
DR: bond premium xx (if stated is higher than market)
CR: bond discount xx(if stated is lower than market)
CR: Cash xx
Interest expense minus the cash paid will give difference. Take the difference and if the bonds carrying value is less than par, add that difference to the carrying value so you can work towards the face value. if the bonds carrying value is more than the face amount, then subtract to again, work towards the face value.
They will tell you whether or not the effective interest method is used vs the straight-line.
BEC -
PASS
FAR - PASS
AUD - PASS
REG - PASS
BOOM! JUST LIKE THAT, I GOT MY LIFE BACK! =D
Using Becker self-study
FAR: (82) 175 hours - 1st attempt
BEC: (XX)
AUD: (69) 45hrs of study - 1st attempt
REG: (XX)