Insurance
Bond Investment Purchased at Premium
Buying a government bond at above par value (premium) for the investment portfolio.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Investment Securities — Bond (AC) | Asset (+) | 1,050,000.00 | - |
| Cash / Bank | Asset (-) | - | 1,050,000.00 |
💡 Accountant's Note
A JOD 1,000,000 par bond purchased at JOD 1,050,000 carries a JOD 50,000 premium that must be amortized over the bond's remaining life using the EIR method, reducing the effective yield below the coupon rate.
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