Business, 31.05.2021 15:20 danielanderson12
On 6/30/12, a company paid $106,000 to retire a bond before maturity. The company recorded a $6,000 loss as part of the transaction. Which of the following must be true regarding this transaction?
a. The face value of the bond was $100,000
b. The market interest rate had increased since the bond was issued
c. The face value of the bond was $106,000
d. The company paid more than the current fair value of the bond to retire it.
e. The market interest rate had decreased since the bond was issued
Answers: 1
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On 6/30/12, a company paid $106,000 to retire a bond before maturity. The company recorded a $6,000...
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