When a Bond Is Retired Early and the Redemption Price

question 21

Short Answer

When a bond is retired early and the redemption price is greater than the bond's carrying value,there will be a(n)__________ on redemption.

---

Definitions:

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs, highlighting the trade-offs in production choices.

Fully Employed

A situation in which all available labor resources are being used in the most economically efficient way.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods, given a set of inputs and technology, assuming efficient use of resources.