Regardless of the bonds purchase price, their amortized cost at maturity will equal
A) face value.
B) face value less premium amounts.
C) purchase price.
D) face value plus discount amounts.

Question

Quizplus · Accepted Answer

The amortized cost of bonds at maturity equals their face value, as any premiums or discounts are fully amortized over the life of the bond, bringing its book value to its face value at maturity.

Regardless of the Bonds Purchase Price, Their Amortized Cost at Maturity