an investor purchases a bond at a price above par value. two years later, the investor sells the bond. The resulting capital gain or loss is measured by comparing the price at which
The bond is sold to the:
A) carrying value.
B) original purchase price.
C) original purchase price value plus the amortized amount of the premium.

Question

Quizplus · Accepted Answer

The Answer of an investor purchases a bond at a price above par value. two years later, the investor sells the bond. The resulting capital gain or loss is measured by comparing the price at which
The bond is sold to the:
A) carrying value.
B) original purchase price.
C) original purchase price value plus the amortized amount of the premium.

An Investor Purchases a Bond at a Price Above Par