Below, you'll learn more about bond premium amortization and one method of calculating it known as the straight-line method.

Under the straight line method, the premium or discount on the bond is amortized in equal amounts over the life of the bond. This is best explained by example.

Straight Line Bond Amortization As is the case for something like depreciation, straight line bond amortization involves the same amount of interest expense each year over the life of the bond.

Bond Amortization Methods. If you issue a bond at other than its face, or par, value, you must amortize the difference between the issue price and par. A premium bond sells for more than par ...

According to the straight-line method, the amortized bond premium is constant for each accrual period. The amortized bond premium is calculated by dividing the total bond premium by the number of ...

The straight line method: Here's a clear-cut guide to understanding asset depreciation and amortization.

Straight-Line vs. Effective-Interest Method of Amortization Treating a bond as an amortized asset is an accounting method used by companies that issue bonds.

Learn what the carrying value of a bond means, how it can change, and the easiest way to calculate a bond's carrying value to maturity.

Typically, amortization is classified as a contra-asset account on the balance sheet. You can often find this information below the line for the unamortized intangible asset.

Calculating bond premium amortization using the straight-line method couldn't be simpler. First, calculate the bond premium by subtracting the face value of the bond from what you paid for it.

Straight line amortization is always the easiest way to account for discounts or premiums on bonds. Under the straight line method, the premium or discount on the bond is amortized in equal ...

Straight line amortization is always the easiest way to account for discounts or premiums on bonds. Under the straight line method, the premium or discount on the bond is amortized in equal ...