An Investor Purchases a Bond at a Price Above Par

question 9

Multiple Choice

an investor purchases a bond at a price above par value. two years later, the investor sells the bond. The resulting capital gain or loss is measured by comparing the price at which
The bond is sold to the:

• A) carrying value.
• B) original purchase price.
• C) original purchase price value plus the amortized amount of the premium.

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Definitions:

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Legal Standpoint

A perspective or position based on legal interpretations, laws, and regulations.

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