Bookkeeping

However, with the added premium cost above the bond’s face value, the effective yield on a premium bond might not be advantageous for the investor. Fixed-rate bonds are attractive when the market interest rate is falling because this existing bond is paying a higher rate than investors can get for …

It is that amount of the purchase price over and above the amount of the fair market value of the target company’s assets minus its liabilities. Goodwill is a premium paid over fair value during a transaction and cannot be bought or sold independently. Meanwhile, other intangible assets include the …