What amortised cost is not showing calculator

Interactive: what amortised cost is not showingMedium

A bond portfolio bought when yields were lower, carried at amortised cost, and priced at today's yield. The carrying value marches to par and does not move; the market value does. The difference is disclosed in a note and appears in profit only if the portfolio is sold.

Carried at amortised cost

—

Worth at today's yield

—

Difference, not in profit

—

As a share of the portfolio

—

As a share of reported equity

—

Reading

—

Annual coupons, flat yield, no credit spread and no convexity beyond the discounting itself — a teaching model of the gap, not a valuation of any portfolio. The equity comparison is arithmetic and not a solvency assessment: whether a difference matters depends on whether anything forces a sale, which is the whole subject above. Information and education only.