[Anonymous]

I hate bonds!!!!! Does anyone have any tips or memorization techniques? Summaries? Rhymes? Ways of thinking about discounts, premiums, coupon rate, market rate, effective rate…? Anything is appreciated.

Where I come from, if we needed money, we dug up a mason jar full of change in the back yard. We never did no fancy bond issues.

[M123]

Practice. With Ninja, you can easily select just the section for bonds and pummel yourself with realistic and representative problems.

There are a lot of topics within bonds so need to start with basics.

A company issues bonds at a rate higher than market rate. All the investors are going to be psyched and buy it. In fact, they'll buy it at a “premium”. That premium reflects the market value of the bond above market rates. That premiums is amortized over the life of the bond.

A company issues bonds at a lower rate than market. Investors think that stinks. In fact, the company would have to pay them to make it worthwhile. That's amortized too.

Prem or discount are amortized “toward” the face value of the bonds.

I challenge you – if you do 20 mcq on just bonds, take notes on the terms and calculations, study them, then do 20 more questions, I bet you show an improvement.

AUD - 77
BEC - 81
FAR - 77
REG - 81

REG - 1. Becker only - fail (forgot to study depr - oops); 2. Becker only - Pass
FAR - 1. Becker only - fail; 2. added Ninja Notes and MCQ - Pass
AUD - 1. Becker videos; Ninja Notes, Audio, MCQ, Becker Notes - Pass
BEC - 1. Ninja Notes, Audio, MCQ, Becker Notes - Pass

[Anonymous]

@M123 Thank you! I think you are right, there's no shortcuts to bonds, you just have to sit down and learn it. Notes and MCQ. I worked on it all day, and I feel better about bonds. But I still have a lot of other topics to cover and practice before my exam! Yikes!

[Author]

Replies