Question

For Ending Books calculation do we use CV(bonds recalled) or CV(coupon payment)?

Answer 1

In Ending Books calculation for bonds, we use the C.V. (coupon payment) and not the C.V. (bonds recalled).

Step-by-step explanation:

In Ending Books calculation for bonds, we use the C.V. (coupon payment) and not the C.V. (bonds recalled). The C.V. (coupon payment) refers to the present value of the stream of future expected payments, which includes the periodic interest payments that the bondholder will receive. It is important to consider the coupon payment when calculating the ending books for bonds as it represents the actual cash flow that the bondholder would receive.