The Journal of Accountancy Published Monthly under the auspices of the Vol. 5 NOVEMBER, 1907 A Symposium on Bond Values. No. 1 THE JOURNAL presents below three papers by Messrs. Charles E. Sprague, Montmery Rollins, and J. Watts Robinson on a disputed point in connection with computations of bond values. Professor Sprague attacks the general view that present bond values should be based in part on the assumption that the interest received is to be reinvested. Messrs. Rollins and Robinson defend this view, though by different arguments. The three papers constitute a highly instructive triangular debate. The editors of THE JOURNAL have no opinion to express as to the merits of the controversy. They feel, in fact, that it would be presumptuous to attempt to give a decision, considering that the three debaters are easily the most distinguished experts in this country in the mathematics of finance. It may be safely said, however, that the readers of THE JOURNAL will find all three papers meaty and interesting. A Fallacy in Bond Values. BY CHARLES E. SPRAGUE, PH. D., C. P. A., Author of "The Accountancy of Investment," "Extended Bond Tables," and "The Philosophy of Accounts." The fallacy of which I am writing relates to the nature of the premium or discount which is paid on a security purchased at a price other than par. It is generally formulated as to premiums and I will therefore confine myself to the presentation of that side |