Asked by
Cindy Saucedo
on Nov 15, 2024
Verified
At maturity, the Premium on Bonds will have a balance equal to zero.
Premium on Bonds
The amount by which the price paid for a bond exceeds its face value, typically because the interest rate it pays is higher than the market rate.
Maturity
The date on which a debt or other borrowing is due to be repaid in full, or when an investment reaches its full value.
- Acknowledge the repercussions of various amortization methods on the expense of bond interest and the carrying value of bonds.
Verified Answer
MC
Learning Objectives
- Acknowledge the repercussions of various amortization methods on the expense of bond interest and the carrying value of bonds.
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