The carrying value (amortized cost) of bonds will equal the market price
A) at the close of every trading day.
B) at the end of the fiscal period.
C) on the date of issue.
D) every six months on the date interest is paid.

Question

Quizplus · Accepted Answer

The carrying value of bonds equals the market price on the date of issue because it is the price at which the bonds were initially sold to investors. Over time, market prices fluctuate due to changes in interest rates and other factors, but the carrying value is based on the amortized cost, which only adjusts for payments and amortizations, not market price changes.

The Carrying Value (Amortized Cost) of Bonds Will Equal the Market