Level I CFA: Non-current (Long-Term) Liabilities-Lecture 1

This is Reading 28 for the 2021 exam
This CFA exam prep video lecture covers:
Bonds payable

[IFT-CFA]

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[amooly]

Your students are lucky to have you. Wish our professors were as good as this

[imbnwu]

I'm really happy that I found your videos, sir. They have been the most helpful resource for me. I will definitely purchase other materials of yours now that I have seen how good you are at teaching the cfa level 1 materials!!! Thank you!

[lucatintor]

22:23 Discounted bond many details are skipped on the impact in the financial statements, double entries it would be recommended in order to let the audience understanding.
I am sure many of them are lost for missing those mentioned details.
Overall the video is very good but only for people with an advanced level of accounting

[akhilb]

As per case 3, 16:20, Why would investor require 9% return when the company is ready to pay 10%?

[maukshy]

For sum @ 22:18, we are expensing 10.73(Int exp) which is already in excess of 10(Int paid) by 0.73. I don't understand the logic of amortizing such 0.73 again over the life of the bond.

[noumaniqbal]

Just require a rather intuitive clarification.. When we say at 22:18 that the company is actually paying 10.00 as interest payment but it shows on income statement an expense of 10.73 in year 2011.. what is the overall take away/lesson to learn from this example ? Is it that companies actually pay less interest than they show? From what I understand it doesn't really matter because even if it shows 10.73 as interest expense, in 2013 it is going to payback 100 Face Value which compensates for the difference in interest rate ..

[aditipareek]

Sir, my question to you is, the rate required by the market keeps changing over the life of the bond, so does the issuing company incorporate it into its financial statements or is it only concerned about the rate during the time of issuance?

[nishikhetan]

Hi Sir, is this video applicable for Dec 2019 exams? I'm asking because there has been some changes in the treatment of operating leases, right?

[satishsubramanian]

Every investor will have different Marist yield or market interest rate requirements so how does the company calculate the media rate and how it maintain the same rate over a period of time as the market interest rate can fluctuate

[sagar]

When the company issues bond on discount, then why on the Balance sheet Bonds payable will be equal to issue price, when the actual liability is the par value(face value) ?

[aishasaidali]

Hi sir. i got confused because when i calculated the PV i got a different answer to yours.
PV= FV/(1+r)^n looking for this example 100/(1+0.11)^1= 90.1. i don't know what is wrong.

[ashleyburger]

What happens if a company wants to raise $100 to finance particular expenditure but proceeds become $98 after increase in rates? Is this just part of the risks of raising funds through bond issuance as opposed to getting direct financing from a bank loan?

[dekumidoriya]

sir good day! im a little bit confused can you drop the detailed formula of pv please

[kartik]

Is this video applicable for feb 2021?

[akarshchauhan]

Is Fixed Incom covered in IFT L1 free course?

[bhavyatayal]

Hi Sir, Why is it that issuers won’t call bonds at a price higher than the market price of the bonds? [CALLABLE BONDS]

[saadshah]

Why are we multiplying 11% with carrying (beg), why not 100?

[khaingsuwai]

Hi, for 13.17, my present value is -129.60 instead of 97.56. why is it so? I have been following all the numbers provided. I realise i have been getting all the wrong numbers for the bond issuance questions. I am using BA II plus calculator and its at END MODE. Appreciate your help.

[ursories]

Bond is issued in 2011, and maturity is in 2013, then shouldn't there be only 2 periods? First interest payment in 2012, second in 2013. that's it.