The yield on bonds is called a discount. Discount bond. Restrictions on bond issuance

Coupon and discount bonds are distinguished depending on the method of generating income. Usually, when issuing bonds, the issuer sets the rate of return as a percentage of the par value. Historically, when bonds were issued, coupons were attached to them, indicating the percentage of yield and the date of payment of the yield. The owner of the bond presented the bond with coupons to generate income. The bondholder was paid the income due to him, and the coupon was cut off (canceled). This is where the term "coupon haircut" came from. An example of such debt obligations is the bonds of the Russian 4% gold loan of 1889, issued into circulation for a period of 81 years with a quarterly payment coupon yield.

Discount bonds(zero-coupon bonds) are sometimes called zero-coupon bonds, i.e. interest on them is not paid, and the owner of the bond has income due to the fact that the bond is sold at a discount at a price below par. The firm redeems the bonds at par value, as a result of which the bondholder receives the corresponding income.

For example, a bond with a par value of 100 rubles. sold at the initial placement at a price of 70% of the face value, i.e. at the price of 70 rubles. Consequently, the income that the buyer will receive upon repayment of this bonded loan will be 30 rubles. (100-70).

Currently, discount bonds are widely used in the Russian stock market... Such bonds are government short-term zero-coupon bonds (T-bills), which are placed by selling at auctions at a price below par. The redemption of bonds is carried out at par.

Coupon bonds can be produced with a fixed interest rate, the income on which is paid continuously throughout the entire circulation period of the bond. The establishment of a fixed interest rate is possible in a stable economy, when fluctuations in prices and interest rates are very small. In an environment of high and rapidly changing interest rates, the establishment of a fixed nominal yield is fraught with great risk for the issuer. If interest rates are lowered, the issuer will have to pay the investors income at the rate fixed at the time of the bond issue.

Therefore, in order to avoid interest rate risk, issuers resort to issuing bonds with floating interest rates. This type of bond became widespread in the United States in the early 1980s, when interest rates were quite high and tended to change. Under these conditions, companies preferred to issue bonds with a floating interest rate tied to some indicator reflecting the real situation on financial market... Typically in the United States, floating rate obligations are tied to the yield on 3-month Treasury bills. When such bonds are issued, the interest rate is set for the first 3 months, and then every 3 months the rate is adjusted depending on the yield on treasury bills. The real interest rate on bonds of a particular company consists of two components:
a) the interest rate on treasury bills and
b) an additional risk premium, usually 0.5%.

Considering the economic situation, the issue of bonds with a floating interest rate is widely used in our country. These types of debt obligations include federal loan bonds with a variable coupon and bonds of a government savings loan, the coupon yield of which is tied to the level of yield on T-bills. Coupon bond yield can be paid quarterly, semi-annually, annually. The frequency of payments is set in the terms of the bond issue.

In some cases, bonds are issued with coupons, which indicate fixed percentages of yield in relation to par, and, in addition, the bond is sold at a discount. In this case, the owner receives a regular income in the form of coupon payments, and also derives income when the bonds are redeemed at par.

If you are going to use such financial instrument like bonds, you just need to know about concepts such as premium or discount on them. Therefore, I propose to understand this issue in detail.

Each bond has two prices. The first price always remains unchanged and it is assigned when the bond is issued, this is the nominal price. The nominal price determines the amount of money that the issuer undertakes to pay to the bearer of this security at the end of its circulation period.

The second price is the market price. This is the price at which the bond is traded in this moment on the exchange. It is formed in the struggle between supply and demand, as it should be according to the laws of the market. This price is not constant and is constantly changing in one direction or another depending on many factors (change in the current one, deterioration of the issuer's reputation, etc.).

Now let's get back, as they say, to our "rams". A bond's discount is the positive difference between its face price and its market price. That is, when a bond sells below par, it is said to be selling at a discount. For example, buying a bond with a face value of 1000 rubles for 900 rubles, you buy it with a discount equal to 1000-900 = 100 rubles.

A bond's premium is the negative difference between its face and market price (well, or the positive difference between its current market price and face value). In other words, when you buy it at a price higher than par, it is said to be purchased at a premium. For example, buying a bond with a face value of 1000 rubles at a price of 1050 rubles, you purchase it with a premium equal to 1050-1000 = 50 rubles.

As mentioned above, the market price of a bond can vary depending on many factors, the main of which is the current key rate in the country. For example, it issued bonds with a coupon yield of 12% per annum, and after a while the interest rate of the Central Bank of the Russian Federation dropped to 8% per annum. It turns out that investing in such bonds is much more profitable than bank deposits, and therefore the demand for them grows and their market price rises. Most likely, their price will rise by 4% (i.e. they will be sold at a 4% premium), thereby compensating for the difference in interest rates.

If, on the contrary, the bond is issued with a coupon yield below the current key rate (or the key interest rate rises after the bond issue), then its market price will be below par. For example, if the key rate is 10%, and the coupon yield on the bond is only 5%, then its market value will be about 5% (10% -5% = 5%) below par in order to compensate investors for the difference in interest rates.

Above we were talking about bonds with a coupon, but besides them, we should also mention the following form valuable papers, as (they are also called zero or discount). Such securities do not provide their holders with any coupon income, and therefore are sold at a price much lower than their face value (with a large discount) in order to attract potential buyers in this way.

Total bond income is made up of the following elements:

periodically paid interest (coupon),

changes in the value of bonds for the corresponding period,

income from reinvestment of received interest.

1. Frequency of interest payments.

A bond, unlike a stock, brings the holder a fixed current income. This income is a permanent annuity - the right to receive a fixed amount annually for a number of years. An annuity is "a series of payments made at fixed intervals over a specified number of periods."

Interest on bonds is paid 1 - 2 times a year. At the same time, the more often interest payments are made, the more potential income the bond brings, because the received interest payments can be reinvested.

The size of the coupon yield on bonds depends primarily on the reliability of the bond, on who is its issuer. The more stable the issuing company and the more reliable the bond, the lower the offered percentage. In addition, there is a relationship between interest income and the maturity of the bond: the longer the maturity date, the higher the interest should be, and vice versa.

2. Change in the value of the bond.

These are bonds purchased at a price below par, i.e. at a discount. An example of such bonds is zero coupon bonds. The income on them is formed as the difference between the price at which they are sold and the face value of the bond. When buying and selling bonds at a discount, an important point is to determine the price of the bond, i.e. at what price the bond should be sold today, if the amount that will be received in the future (par) and the base rate of return (refinancing rate) are known.

The calculation of this price is called discounting, and the price itself is the present value of the future amount of money.

Discounting is carried out according to the formula:

Krd = H * (1 / ((1 + mc) / 100)), where

Кр - bond sale price at a discount, rubles.

H is the par value of the bond, rubles.

t is the number of years after which the bond will be redeemed.

с - loan interest rate (or refinancing rate),%.

1 / ((1 + mc) / 100) is a discount multiplier showing what share is the sale price of bonds in its nominal price.

The difference (H - Krd) is a discount and represents income on this kind bonds.

3. Income from reinvestment of received interest - present only if the current income received in the form of interest on the bond is constantly reinvested.

5. The yield of bonds.

Profitability is a relative measure and represents income per unit cost. Distinguish between the current yield and the total (final) yield of bonds.

The indicator of the current yield characterizes the current receipts on the bond relative to the costs made for its purchase.

Stack. = (D / Kr) * 100, where

Stack. - current bond yield,%.

D - the amount of interest paid per year, rubles.

Example. Investor A acquired for 11,000 rubles. bond with a par value of 10,000 rubles. Coupon rate = 50% per annum. Interest is paid once at the end of the year. The bond matures in 2 years.

Current yield = (5,000 / 11,000) * 100 = 45.5%

The current yield on a bond is the simplest characteristic of a bond. Using this indicator, it is impossible to choose the most effective bond for investing funds, because the change in the value of the bond during the period of holding it is not taken into account. Therefore, on bonds with a zero coupon, the current yield = 0, although they bring income in the form of a discount.

Both sources of income are reflected in the final or total yield, which characterizes the total yield on the bond attributable to the unit cost of purchasing the bond.

Skon. = ((Dsp. + R) / (Kr * n)) * 100, where

Skon. - the final yield of the bond,%.

Chipboard - total interest income, rubles.

Р - the amount of the discount on the bond, rubles.

Cr is the market value of the bond at which it was purchased, rubles.

n - the number of years during which the investor owned the bond.

The amount of the discount P = the difference between the par value of the bond and the purchase price if the investor holds the bond until maturity. If the investor sells the bond without waiting for maturity, then P is the difference between the selling and buying prices of the bond.

H - Cr = 10,000 - 11,000 = - 1,000

Skon. = ((2 * 5000 + (- 1,000)) / (11,000 * 2)) * 100 = 40.9%

There are 2 important factor affecting the yield of the bond. These are inflation and taxes. If the yield on the bond = 4% per annum, and the inflation rate = 3%, then the real yield would be 1%. If inflation is higher, then you can get zero gain or loss.

Therefore, in conditions of inflation, investors avoid investing in long-term bonds.

Taxes also reduce bond yields.

The real profitability of certain bonds should be calculated after deducting taxes paid from income, and also taking into account the existing inflation rate.

The main difficulties in accounting for bonds are, first, in the simultaneous presence of interest (coupon) income and a difference in the bond price (discount or premium); secondly, in the specific procedure for transferring the accumulated coupon income from one owner to another. This article is devoted to the peculiarities of reflecting coupon income, discount and premium in accounting.

The procedure for circulation of coupon income

For a bond, its holder receives an interest (coupon) income from the par value of the bond. Coupon income is paid periodically, for example, if the bond is issued for 8 years, and the coupon is paid 4 times a year, then 32 coupon payments will take place during the bond circulation period. The well-known expression “cut coupons” came into use precisely because of bonds. Previously, bonds were issued in the form of a paper document, on which leaflets - coupons were attached. On the day the interest was paid, the issuer cut the coupon with scissors and paid the income to the bondholder.

The established business custom of circulation of coupon bonds assumes that the buyer pays the accumulated coupon yield (hereinafter - ACI) to the previous owner as part of the bond price. NKD- part of the coupon yield in the form of a percentage to the par value of the bond in proportion to the number of days that have passed since the date of the bond issue or the date of payment of the previous coupon yield. The date of the beginning of the coupon period for calculating the ACI is the day following the date of the bond issue or the date of payment of the previous coupon for already circulating bonds. A deal in a bond, the execution of which falls on the coupon payment date, is not accompanied by an ACI payment both for the coupon redeemed on that day, and for a new coupon whose coupon period begins on that day.

Thus, when a bond is sold, the seller receives interest from the buyer for the entire period of holding the bond since the last coupon payment and does not incur any interest losses from the sale. The NKD reimbursed by the buyer for the seller is the payment of income. For the buyer, the NKD paid to the previous owner is an expense when purchasing the bond and cannot be considered income. In the future, the buyer will receive reimbursement of his expense under the DCI either from the issuer, or from another buyer, if, in turn, he also sells the bond.

The payment of NKD can even accompany the issue of bonds. Usually, the initial placement of bonds by the issuer does not end within one day (the date of the start of the issue). Therefore, starting from the second day of the placement of bonds, the buyer, when purchasing bonds, also pays NKD, calculated according to the following formula:

NKD = N x C1 x (t - to) / 365/100%,

C1 - interest rate for the first coupon (in percent per annum);

N is the par value of the bond;

t o - the date of the beginning of the placement of bonds;

t - the date of the conclusion of the bond purchase and sale agreement.

The amount of the coupon payment for one bond is determined with an accuracy of one kopeck, the figures are rounded off in the calculation according to the rules of mathematical rounding.

Accounting for coupon income paid by an enterprise

In accounting, one should separate the ACI paid to the previous owner (issuer) when purchasing the bond, and the coupon income accrued during the ownership of the bond by the enterprise.

On which balance account should the paid ACI be recorded? IN letter of the Ministry of Finance of the Russian Federation dated January 14, 2004 No. 16-00-14 / 11 the following answer was given:

In "PBU 19/02" Accounting for financial investments "it is established that the initial cost of financial investments purchased for a fee includes the amounts paid in accordance with the agreement to the seller. This rule also applies to bonds purchased from the seller, taking into account the ACI, attributable to the date of their purchase ".

If you use this letter, it is recommended to consider the ACI separately from the “body” of the bond, on a separate subaccount to account 58-2 “Debt securities”, for example, on account 58-2-2 “Funds received and costs incurred on bond coupons”.

Example 1

03/20/2013 the company bought 4 thousand bonds for 100.15% of the par value VTB-5 rev... The face value of the bond is 1,000 rubles. NKD amounted to 12.57 rubles.

On March 28, 2013, the company sold bonds for 100.24% of par, and the NKD amounted to 14.19 rubles.

* 55-4 - Brokerage account

** 76-5 - Coupon Yield

*** As part of final turnovers for the reporting month.

In practice, there is another option for accounting for the paid ACI, namely on account 76 "Settlements with other debtors and creditors", for example, on a separate sub-account 76-5 "Coupon income". With this option of accounting for coupon income, the following are performed accounting records... The debit of account 76-5 "Coupon yield" reflects the costs incurred to pay for the ACI when purchasing bonds in the primary and secondary markets. Credit 76-5 "Coupon yield" includes funds received in the form of ACI during the resale of previously purchased bonds on the secondary market, as well as interest income received upon redemption of the coupon.

The author is closer to this very approach, since in transactions, the NKD is clearly identified as interest income, and he, income, is not only paid to the buyer, but also accrued by the company independently during the time of holding the bond. If, in relation to the ACI paid to the buyer, there are reasons to capitalize on account 58, then in relation to the coupon income independently accrued by the enterprise, there is no such basis. For according to p. 18 PBU 19/02 The initial cost of financial investments, at which they are accepted for accounting, may change in cases established by legislation and this Regulation (meaning PBU 19/02). The accrual of interest on a financial investment is not included in the number of such cases, which means that the coupon income generated during the holding of the bond is reflected in the traditional accounting entry Debit 76 Credit 91.

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At one time, the accounting of coupon income was registered in The Federal Commission for the Securities Market of 27.11.1997 No. 40... The FCSM proposed to take into account the ACI paid to the previous owner on the account for accounting for financial investments, and in the absence of the paid ACI, accrue income on the bond on account. 76 “Settlements with various debtors and creditors”, subaccount “Interest (income) on bonds”. Unfortunately in Resolution No. 40 there is no direct indication of how to accrue income on a bond during the period of its ownership by the enterprise, if there is an ICD on it paid to the previous owner. According to the author, it was assumed that in this case, the accrued coupon income should be credited on the debit of financial investments. Currently, there is no such possibility due to the prohibition established by p. 18 PBU 19/02... Therefore, for enterprises, the choice comes down to the following: 1) fully take into account the coupon income on the account. 76 "Settlements with various debtors and creditors"; 2) NKD paid to the previous owner to take into account on account. 58 " Financial investments", And the coupon income accrued by the enterprise on account. 76 "Settlements with different debtors and creditors"

Accounting for the coupon income accrued by the enterprise

According to p. 34 PBU 19/02 investment income is recognized as income from common types activities or other income in accordance with PBU 9/99 "Income of the organization".

Accrual entities recognize bond coupons on the earliest of the following dates:

• day of coupon payment;
• the day the company sells the bond;
• maturity date of the bond;
• the last business day of the reporting period. On the last business day of the reporting period, the entire coupon income accrued for reporting period or for the period from the date of purchase or from the start date of the next coupon period (including for the remaining non-working days, if the last working day of the reporting period does not coincide with its end).

Example 2

Initial conditions of Example 1. But the company does not sell bonds, but keeps them on the balance sheet. The coupon rate is 7.4% per annum. The previous coupon payment by the issuer took place on 17.01.2013.

As of March 31, 2013, the NKD will be:

RUB 1000 x 7.4% x 73 days / 365 days = 14.80 rubles. During the holding of the bonds, the company generated an income of 14.80 - 12.57 = 2.23 (rubles)

On April 18, 2013, the issuer paid a coupon in the amount of 18.45 rubles. per bond (at the rate of 7.4% per annum).

* As part of final turnovers for the reporting month.

Discount (premium) accounting for bonds

Difficulties with bonds are not limited to specific accounting of the NKD. Depending on the market conditions coupon bond may be placed (traded) at a premium or discount, but it is always redeemed at par. Any coincidence of the price with the par during the circulation period (if we are not talking about the last days before maturity) is more an accident than a rule.

For bonds traded on the organized securities market, the discount (premium) is an integral part of the current value, the dynamics of the current value is reflected in accounting through regular revaluations of bonds.

If we are talking about non-tradable bonds, then clause 22 PBU 19/02 a special procedure for accounting for premiums (discounts) has been established.

In response to a private request, the Central Bank of the Russian Federation investigated the economic nature of the premium paid when purchasing a bond, which is of interest to enterprises developing accounting policy for operations with bonds. In particular, the Bank of Russia explained:

« When a debt is purchased at a price higher than par, the amount of the excess of the purchase price over par (the so-called premium) is interest income included in the purchase price of the debt and related not only to the current interest (coupon) period, but also to future interest (coupon) periods periods ".

If you refer to the text p. 22 PBU 19/02, it is clear that the Ministry of Finance supports the following interpretation:

“For debt securities, for which the current market value is not determined, the organization is allowed the difference between initial cost and the nominal value during the period of their circulation evenly, in proportion to the income due on them in accordance with the terms of the issue of income, shall be attributed to financial results commercial organization(as part of other income or expenses) ... "

Proceeding from the fact that it is "permitted", we conclude that this operation can be omitted, but we, nevertheless, will consider it, for two reasons. Firstly, it contributes to a more even recognition of income (expenses), and secondly, p. 42 PBU 19/02 obliges to disclose in composition annual reporting information on the difference between the initial cost and the par value during the bonds circulation period. Consciously, such a straight-line write-off will not be called depreciation, since the depreciation cost financial asset- this is a concept from IFRS, and although the goals of both procedures are similar, the very mechanism of its implementation is different.

The procedure for reflecting the equal recognition of the premium (discount) in the accounting is established by the Instructions for the application of the chart of accounts accounting financial and economic activities of organizations.

At writing off the amount of excess of the purchase value of the bonds acquired by the enterprise over their par value (in other words, awards - approx. the author) records are made on the debit of the account. 76 "Settlements with various debtors and creditors" (for the amount of income due on securities) and the credit of accounts 58 "Financial investments" (for part of the difference between the purchase and par value) and 91 "Other income and expenses" (for the difference between amounts attributed to accounts 76 "Settlements with various debtors and creditors" and 58 "Financial investments").

At additional accrual the amount of excess of the par value of the bonds acquired by the enterprise over their purchase value (or otherwise, discount- note. author) records are made on the debit of accounts 76 "Settlements with different debtors and creditors" (for the amount of income due to receive on securities) and 58 "Financial investments" (for part of the difference between the purchase and par value) and the credit account. 91 "Other income and expenses" (for total amount, attributed to accounts 76 "Settlements with various debtors and creditors" and 58 "Financial investments").

Example 3

On 20.03.2013 the company bought 5 thousand bonds of CJSC “Kometa” for 104% of the par value. The face value of the bond is 1,000 rubles. The coupon is paid by the issuer 4 times a year, the coupon rate is 12%. Bonds purchased during primary placement on the first day of release. The bond circulation period is 4 years.

The first coupon payment date is 20.06.2013.

The accounting policy of the enterprise provides for bringing the value of bonds that are not traded on the organized securities market up to their par value.

On the last business day of March 2013, the company calculates the ACI and calculates the difference that must be attributed to the financial results as a result of bringing the purchase price of the bond to par.

NKD = 1000 x 12% x 11 days / 365 days = 3.62 (rub.)

5000 pcs. x 3.62 = 18 100 (rub.)

Difference = (104% - 100%) x 1000 x 11 days. / (365 + 365 + 365 + 366) days. = 0.30 (rub.)

5000 pcs. x 0.30 = 1500 (rub.)

Last working day of April 2013

NKD = 1000 x 12% x 41 days. / 365 days = 13.48 (rub.)

For additional accrual 5000 pcs. (13.48 - 3.62) = 49 300 (rub.)

Difference = (104% - 100%) x 1000 x 41 days. / 1461 days. = 1.12 (rub.)

To add 5000 pcs. (1.12 - 0.30) = 4 100 (rub.)

Last working day of May 2013

NKD = 1000 x 12% x 72 days. / 365 days = 23.67 (rub.)

To additional accrual 5000 x (23.67 - 13.48) = 50 950 (rub.)

Difference = (104% - 100%) x 1000 x 72 days. / 1461 = 1.97 (rub.)

To add 5000 pcs. (1.97 - 1.12) = 4 250 (rub.)

On the day of coupon payment:

NKD = 1000 x 12% x 92 days. / 365 days = 30.25 (rub.)

For additional accrual 5000 pcs. (30.25 - 23.67) = 32 900 (rub.)

Difference = (104% - 100%) x 1000 x 92 days. / 1461 = 2.52 (rub.)

To add 5000 pcs. (2.52 - 1.97) = 2 750 (rub.)

On the day of payment of the coupon yield by the issuer, the balance on the account. 76-5 closed.

In the following periods, accounting entries are made in a similar manner, as a result, by the time the bond is redeemed by the issuer book value will approach the nominal.

Discount bond

Discount bond

Discount bond - a bond, the owner of which earns income by purchasing the bond at a price below par, and at the time of maturity receives the par value. The discount bond does not provide for other payments (coupons).

In English: Discount bond

Synonyms: Zero coupon bond, Zero bond

English synonyms: Zero coupn bond

Finam Financial Dictionary.

Discount bond

Debt obligation, the selling price of which is lower than its basic cost. Discount bonds that do not pay interest are called zero coupon bonds.

Terminological Dictionary of Banking and Financial Terms. 2011 .

See what "Discount bond" is in other dictionaries:

- (also a zero-coupon bond, zero bond, "zero", English Zero Coupon Bond or simply "zero") one of the types of bonds, the income from which creditors receive in the form of a deep discount, that is, markdowns of the par value at ... ... Wikipedia

Discount bond- - a bond, the income on which is paid in the form of a discount, that is, the difference between the market purchase price and the face value - the amount that the investor will receive at the end of the security's circulation period. For example, a bond with a maturity of one year ... ... Banking encyclopedia

A bond that is sold at a price below the nominal, usually in the secondary market ... Encyclopedic Dictionary of Economics and Law

discount bond- A bond sold at a discount against its price at maturity. See also deep discount bond ... Financial and investment explanatory dictionary

Discount bond- A debt obligation, the selling price of which is lower than its principal value. Discount bonds that do not pay interest are called zero coupon bonds ... Investment Dictionary

- (bond) IOU issued by the borrower to the lender. Bonds are usually issued by the state, local authorities or companies in the form of fixed interest securities. However, there is ... ... Financial vocabulary