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Amortization of bond issue costs

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    • Avatar of RubenRuben
      Participant
        16 Nov 2017 at 5:44 pm
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        Does the face value of a bond include issuance costs (printing costs,
        legal fees, sales commissions associated with the bond issue)? If yes,
        then is the market rate of interest and coupon rate applicable to face
        value inclusive of issuance costs to get interest expense and coupon
        interest amount respectively?

      • Avatar of Sophie MaconSophie Macon
        Keymaster
          18 Nov 2017 at 7:09 am
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          Hey @Ruben, face value of a bond is the amount of money a holder will get back once a bond matures. I’m not aware that these include any other admin/issuance costs related to the bond issuance at all, that should be separate/excluded.

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