The current carrying value of Kennett's $800,000 face value bonds is $797,000.If the bonds are retired at 102, what would be the amount Kennett would pay its bondholders?
A)$797,000
B)$800,000
C)$804,000
D)$816,000

Question

Quizplus · Accepted Answer

The bonds are retired at 102, meaning Kennett would pay 102% of the face value. Therefore, the payment would be 102% of $800,000, which is $816,000.

The Current Carrying Value of Kennett's $800,000 Face Value Bonds