Carrying Value Is Computed Annually When a Bond Is Issued

question 24

Multiple Choice

Carrying value is computed annually when a bond is issued for other than its face value. For a bond issued at a discount, how will this component change as the bond approaches maturity?

• A) Decrease
• B) Increase
• C) Remain constant
• D) Not enough information given to decide.

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Definitions:

City

A large human settlement generally characterized by significant population density, economic activities, and a developed infrastructure.

State

Refers to a politically organized body of people under a single government, or a specific condition or mode of being.

Region

A geographic area defined by natural, political, or cultural characteristics.

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The overall health and performance of a country's economy, measured by factors like GDP, employment rates, and inflation.