Date of Issue

Par Value
Coupon
YTM

1/1/2010
5000000
10% semi-annual
8%

1/1/2010 5,262,106.84
12/31/2010 5181494.76
12/31/2011 5094304.73
12/31/2012
5000000
AMORTIZATION
250,000.00
250,000.00
250,000.00
250,000.00
250,000.00
250,000.00

Investor
HTM: purchased on 1/1/2011@ytm
FVTPL: purchased on 1/1/2011 ytm

AFS: purchased on 1/1/2011 ytm o

210,484.27
208,903.64
207,259.79
205,550.18
203,772.19
201,923.08

39,515.73
41,096.36
42,740.21
44,449.82
46,227.81
48,076.92

5,262,106.84
5,222,591.11
5,181,494.76
5,138,754.55
5,094,304.73
5,048,076.92
5,000,000.00

12/31/2011
12/31/2012

TM: purchased on 1/1/2011@ytm of 9%

VTPL: purchased on 1/1/2011 ytm of 9%
Market Yields
12/31/2011
7%
12/31/2012
5%

FS: purchased on 1/1/2011 ytm of 9%

PV OF CF 9%
5046816.69
5000000

5,089,688.14

Parent: Issuer
1/1/2010 Cash

5142477.07
5000000
7/1/2010 Interest Expense
5,089,688.14
12/31/2010 Interest Expense
Premium on BP

Analysis
HTM
CV of Issuer
Acq Cost

5181494.76
5089688.14
91806.62
Interest Income

Interest Expense
500,000-80612.08
500,000-87190.03 500,000-42871.45
500,000-94304.73 500,000-46816.69

Interest Expense
500,000-87190.03 500,000+52788.93
500,000-94304.73 500,000+142,477.07
7/1/2011 Interest Expense
12/31/2011 Interest Expense
Premium

Subsidiary: Investor
HTM
Cash

5,262,106.84
Bonds Payable
Premium on Bonds

5000000
262,106.84

5,262,106.84

250,000.00
Cash

250,000.00
250,000.00

Interest Payable

250,000.00
80,612.08

Interest Expense

80,612.08
WPEE!!! Parang retirement of Bonds
BP
5,000,000
Premium
181,494.76
Gain on BP
HTM (Dating Cash)

Difference
44318.58
47488.04
91806.62

+142,477.07
250,000.00
Cash

Cash
250,000.00

Interest Income
Interest Receivable
Interest Income
Interest Income
HTM

250,000.00
Interest Payable

250,000.00
87190.03

Interest Expense

87190.03

250,000.00
250,000.00
42,871.45

WPEE 1
BP
Prem

WPEE 2
WPEE 3

5,000,000
181,494.76

HTM
Gain
Kung naretire na dapat wala ka ng Interest Expense/Income
Interest Income
500,000
Interest Expense
Interest Expense
87190.03
HTM
42,871.45
Interest Income

WPEE 4

Premium
Interest Payable
Interest Receivable

12/31/2012
WPEE 1
BP
Prem

250,000

5,000,000
181494.7581
HTM
RE, beg!

WPEE 2
WPEE 3

RE, beg
HTM

44,318.58
42,871.45
Premium

WPEE 4
WPEE 5

Interest Income
HTM
Premium
Interest Expense

453183.31
46,816.09

5,262,106.84

91,806.62
5,089,688.14

250,000.00
250,000.00
42,871.45

5089688.14
91,807
a ng Interest Expense/Income
500,000
**PREVIOUS YR AMORT FVTPL-HTM
42,871.45

87190.03 PY AMORT YOY CV

250,000

5089688.14
91806.61814 **Gain or Loss on Retirement
**Over the years, nababawasan siya
**Reversal!!
CURRENT YR AMORT
87190.03
**Reversal
94304.73
405695.37 **Reversal

Ex. 2
Investor
FVTPL

7/1/2011 Cash

12/31/2011 Interest Receivable

FVTPL

5,089,688.14
Cash

5,089,688.14

250,000.00
Interest Income

250,000.00

250,000.00
Interest Income

250,000.00

52,788.93
Gain on MTM

52,788.93

5,000,000.00
181,494.76
FVTPL
Gain on Ext.

5,089,688.14
91,806.62

500,000.00
Interest Expense

500,000.00

87,190.03
Premium

87,190.03

WPEE
BP
Premium

Interest Income

Interest Expense

Gain on MTM

52,788.93
FVTPL

2012 BP
Premium

Interest Income

Interest Expense

52,788.93

5,000,000.00
181,494.76
FVTPL
RE, beg!!

5,089,688.14
91,806.62

500,000.00
Interest Expense

500,000.00

87,190.03
Premium

87,190.03

Gain on MTM

52,788.93
FVTPL

FVTPL
Interest Income

142,477.07
500,000.00
Premium
Interest Expense
Loss on MTM

52,788.93

94,304.73
405,695.27
142,477.07

DOWNSTREAM Parent Issuer

Parent lahat ng Allocation
UPSTREAM Subsidiary Issuer
May hati si NCI

12/31/2011
MTM
5142477
AC
5046817
Allowance
95660.38
Allowance

95660.38
OCI

WPEE 1
WPEE 2

SAME
OCI

95660.38

95660.38
Allowance
95660.38
Interest Income
457128
HTM
42871.45
Premium
87190.05
Interest Expense
412809.4

70-30
Face Value 10,000,000
Coupon
8%
Term
10 years
Interest
Semi-annual
30-Jun
31-Dec
YTM
9%
WPEE

Investor
4,000,000
8%
7 years
160,000

7%

Year 4
Bonds Payable
PV of Principal0.5399729 2159891.449
PV of Interest10.222825 1,635,652.05
3795543.494
BP

Cash
7.1
7.2
7.3

160,000
160,000

HTM
0.61778179 2,471,127.16
10.92052028 1,747,283.24
4,218,410.41

Interest ExpenseAmort
170799.4572
171285.4328

CV
3795543.494
10,799
3,806,343
11,285
3,817,628

HTM
7.1
7.2
7.3

160,000
160,000
Int Exp

147,644.36
147,211.92
170799.4572
Disct
Int Pay

Int Rec

(12,355.64)
(12,788.08)

4,218,410.41
4,206,054.77
4,193,266.69

10,799
160,000

160,000
HTM
Int Inc

Year 7 end
Bonds Payable
PV of Principal0.7678957 3,071,582.95
PV of Interest5.1578725
825,259.60
3896842.55
Year 7 start 0.7031851 2,812,740.51
6.5958861 1,055,341.77
3,868,082.28

(12,355.64)
147,644.36
HTM
3,254,002.58
852,568.48
4,106,571.06
0.759411556 3,037,646.22
6.873955537 1,099,832.89
4,137,479.11
0.813500644
5.32855302

beg of the year

MTM yields
Year 1
Year 2
Year 3
Year 4

6%
8%
5%
6.50%

PV of Interest
9.954003994
8.110895779
7.170137167
5.372589938

WPEE
HTM
Bonds Payable
4,000,000
Loss on Retirement
422,867
Discount on Bonds Payable204,457
HTM
4,218,410.41
Interest Income
320,000
Interest Expense
320,000
Discount on BP
22,085
Interest Exp
HTM

25,143.72
Interest Income

HTM
Bonds Payable
4,000,000
RE, beg
422,867
Discount on BP
HTM
Discount on BP
72,538.78
RE, beg

2,805,519.52
2,702,256.68
3,282,986.28
3,301,563.31

FVTPL
Bonds Payable
4,000,000
Loss on Retirement
422,867
Discount on Bonds Payable
FVTPL
Interest Income
320,000
Disct
22,085
Interest Expense

FVTPL

179,749.75
Gain

Bonds Payable
RE, beg

4,000,000
422,867
Discount on BP
HTM

Discount on BP

72,539

25,143.72

204,457
4,218,410.41

72,538.78

320,000

Discount on BP
28,760.27
Interest Expense

28,760.27

HTM

PV of Principal
0.70137988
0.675564169
0.820746571
0.825390827

22,085

Interest Income
320,000
Interest Expense

HTM

1,592,640.64
1,297,743.32
1,147,221.95
859,614.39

80,931.29

RE, beg
RE, beg

211,797.82
FVTPL

Interest Income
Disct

320,000
28,760
Interest Expense
269,030.53
FVTPL

Loss

RE, beg

80,931.29

30,908.05
Interest Income

30,908.05

Interest Payable
160,000
Interest Receivable

160,000

FVTPL
4,398,160.16
4,000,000.00
4,430,208.23
4,161,177.70

204,457
4,218,410.41

AFS
Bonds Payable
4,000,000.00
Loss on Retirement 422,866.91
Discount on Bonds Payable
204,456.51
AFS
4,218,410.41
Interest Income
320,000.00
Interest Expense
320,000.00

342,085
Discount on BP

AFS
179,749.75

22,084.89
Interest Exp

22,084.89

25,143.72
Interest Income

25,143.72

Allowance

204,457
4,218,410.41

343,549.31
UGL
343,549.31
Bonds Payable
4,000,000.00
Loss on Retirement 422,866.91
Discount on Bonds Payable
204,456.51
AFS
4,218,410.41

Discount on BP
72,539

72,539
RE, beg

AFS
211,797.82

80,931.29
RE, beg

Allowance

269,030.53

80,931.29

54,606.64
UGL

348,760

72,539

54,606.64

WPEE
HTM
Bonds Payable
Loss on Retirement

Interest Income

4000000
422866.9112
Discount on Bonds Payable
204456.5057
HTM
4218410.406
320000
Interest Expense
320000

Discount on BP

FVTPL
Bonds Payable
Loss on Retirement

Interest Income
Disct

22084.89006
Interest Exp

HTM

22084.89006
25143.71886

Interest Income

HTM
Bonds Payable
RE, beg
NCI, beg

FVTPL
25143.71886

4000000
296006.8379
126860.0734
Discount on BP
HTM

Discount on BP

Bonds Payable
RE, beg
NCI, beg
204456.5057
4218410.406

72538.78433
RE, beg
NCI, beg

Discount on BP
50777.14903
21761.6353

Interest Income

320000
Interest Expense

Discount on BP

320000

RE, beg
NCI, beg

28760.27169
Interest Expense

HTM

28760.27169

Interest Income
Disct

56651.90638
24279.38845

Loss

80931.29482
RE, beg
NCI, beg

HTM

30908.05034
Interest Income

Interest Payable

30908.05034
160000

Interest Receivable

160000

4000000
422866.9112
Discount on Bonds Payable
204456.5057
FVTPL
4218410.406
320000
22084.89006
Interest Expense
342084.8901

AFS
Bonds Payable
Loss on Retirement

Interest Income

4000000
422866.9112
Discount on Bonds Payable
AFS
320000
Interest Expense

Discount on BP

22084.89006
Interest Exp

179749.7542
Gain

AFS
179749.7542

25143.71886
Interest Income

Allowance

343549.3138
UGL

4000000
296006.8379
126860.0734
Discount on BP
HTM

Bonds Payable
Loss on Retirement
204456.5057
4218410.406

72538.78433
RE, beg
NCI, beg

Discount on Bonds Payable

AFS
Discount on BP

50777.14903
21761.6353
148258.4771
63539.34735

FVTPL

4000000
422866.9112

72538.78433
RE, beg
NCI, beg

AFS

80931.29482
RE, beg
NCI, beg

211797.8245
Allowance
320000
28760.27169

Interest Expense

UGL
348760.2717

269030.5319
FVTPL

54606.63775

269030.5319

204456.5057
4218410.406
320000

22084.89006

25143.71886

343549.3138

204456.5057
4218410.406

50777.14903
21761.6353
56651.90638
24279.38845
54606.63775