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Question

The carrying value of bonds at maturity always equals: Multiple Choicethe amount of cash originally received in exchange for the bonds.the par value of the bond.the amount of discount or premium.the amount of cash originally received in exchange for the bonds plus any unamortized discount or less any premium.The amount in excess of par value.

Asked By CrimsonShadow33 at

Answered By Expert

Gareth

Expert · 5.4k answers · 5k people helped

#### Solution By Steps

***Step 1: Identify the Carrying Value***

The carrying value of a bond is the amount at which it is reported on the balance sheet.

***Step 2: Definition of Carrying Value***

The carrying value of a bond at maturity equals the amount of cash originally received plus any unamortized discount or less any premium.

#### Final Answer

The amount of cash originally received in exchange for the bonds plus any unamortized discount or less any premium.

#### Key Concept

Carrying Value

#### Key Concept Explanation

The carrying value of a bond represents its book value on the balance sheet, calculated as the initial cash received adjusted for any unamortized discount or premium. It reflects the actual value of the bond at a specific point in time, providing an accurate representation of the bond's financial position.