Question
Asked By CrimsonShadow33 at
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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.
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