increase market interest will affect bond in D/B?

I

iceyvc83

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Am i right to think like this!!!
when interest increase, a bond of a company will repricing by lower like 1000 to 950
and with certainty that the debt will decrease and D/E will increase right?
-bond that are funding company, what cost is used, is it will re-value?
-bond that are held to sell, it mark in balance sheet as asset at purchasing cost right?
 
Most companies report bonds that they have issued at amortized value (par value, with any premium or discount amortized over the life of the bonds); thus, changes in the market value of the bond will have no effect on the D/E ratio.
Some companies report bonds that they have issued at market value. In that case, changes in market value will affect the D/E ratio.
When a company invests in bonds (government bonds or another company’s bonds), they can consider them to be:
  • Held-to-maturity securities: reported at amortized cost; changes in market value will not affect the D/E ratio
  • Available-for-sale securities: reported at fair market value; changes in market value will affect the D/E ratio
  • Held-for-trading securities: reported at fair market value; changes in market value will affect the D/E ratio
  • Designated-at-fair-value securities: reported at fair market value; changes in market value will affect the D/E ratio
 
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