When a Bond Premium Is Being Amortized,at Maturity

question 66

Multiple Choice

When a bond premium is being amortized,at maturity

• A)the premium will be equal to the face value of the bonds
• B)the premium is written off and a gain or loss is recorded
• C)the carrying value of the bond is equal to the face value of the bonds
• D)the carrying value of the bond will be greater than original issue price

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Definitions:

Total Weight

The combined mass of all objects or substances in a particular group or set.

Monetary Products

Financial products and services that have monetary value, including currencies, derivatives, and savings accounts.

Round Off

The process of adjusting numbers to their nearest value, often to simplify figures in financial and mathematical calculations.

Decimal Places

The positions or digits to the right of the decimal point in a decimal number, indicating fractions of a whole.