Amortized Value

The value of a bond as determined by the process of amortization. The amortized value of a bond may be used as its asset value on a balance sheet.

References in periodicals archive ?

Combined, the three corporates report an amortized value of approximately $1.5 billion in Ambac-backed securities.

Ambac restructuring could mean bad news for corporate-held MBS

Workers' compensation Iosses segregated and amortized value of bonds approved for life companies in 1917.

Annual checkup: the U.S. insurers' annual statement has evolved from a fraud detector into a critical tool for demonstrating solvency

* The "Amortized Value" Close: A sale may be hard to close if the buyer complains that the price "is a little more than the customer wants to pay." Lester's solution: Amortize the cost difference over the life of the product and ask if the extra value isn't worth just a few dollars a day.

Eleven ways to clinch a sale

Initially, the discounted or amortized value of the future stream of quarterly loan payments (cash flows) would be the outstanding or remaining principal of $50,000.

Amortized Value = Annuity Payment x Present Value Annuity Factor = $2,952.37 x 16.93554 = $50,000 The discounted or present value of the loan at any other point in time can be calculated in the same manner, or determined more easily from a traditional loan-amortization schedule.

At this rate of return, the selling price (market value) of the loan would be the present of amortized value of XYZ's remaining payments as originally established in the amortization schedule.

Asset valuation: a practical approach for decision making

From a tax perspective, valuing the covenant is particularly advantageous to a buyer because he or she can deduct annually, as an ordinary business expense, the amortized value of the covenant based on its legal life.

How to value covenants not to compete; the appraiser must put a dollar figure on a series of qualitative assessments

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