A $200,000, 8% bond issue was sold at face value and later redeemed at 104% of face value. The corporation would have a

Name: A $200,000, 8% bond issue was sold at face value and later redeemed at 104% of face value. The corporation would have a
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The bond was redeemed at 104% of its face value, which means the corporation paid $208,000 to redeem it. Since the bond was initially sold at face value ($200,000), the corporation incurs a loss of $8,000 ($208,000 - $200,000).

A $200,000, 8% Bond Issue Was Sold at Face Value