The answer is D
When bonds are sold for more than face value, the carrying value is equal to the face value plus any premium. The premium is the excess amount paid by the investors over the face value of the bond and is amortized over the life of the bond.
It prorated in it's decrease to face value
the face value plus the unamortized premium.
You do not say what these are, however, US Savings Bonds are sold for less than the face value, and attain face value when they are fully mature.
You do not say what these are, however, US Savings Bonds are sold for less than the face value, and attain face value when they are fully mature.
Are referred to as "Premium" bonds
premium
Discount A+
Discount A+
place value and face value of a number are always equal at ones place.
saving bonds : bonds issued by the federal government as a way of borrowing money; they are purchased at half the face value and increased every 6 months until full face value is reached
Stocks are displayed as a value of currency per share, whereas bonds are displayed as a percentage of par value (or face value). Generally, bonds have a face value of $1000, and if the price is reflected as 100.00 that means the bond is currently worth 100% of its face value.
it is calucated on the face value of the bond