QAEconomics › The carrying value of bonds at maturity always equals:
Q

The carrying value of bonds at maturity always equals:

a) the amount of cash originally received in exchange for the bonds.

b) the par value of the bond.

c) the amount of discount or premium.

d) the amount of cash originally received in exchange for the bonds plus any unamortized discount or less any premium.

A

Answer: b) the par value of the bond.

Upon maturation, the carrying value of a bond will always be equivalent to the par value of the said bond.

The carrying value of a bond is also known as the face value of the bond, or the sum of the premiums that have not been wiped out and the par value of the bond

When the bond matures, the discounts and premiums will be wiped out or amortized, and then the par value of the bond will remain.

3 years ago
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