Use the present value and future value tables included in Appendix 8 and on the textbook companion website.
-The net amount required to retire a bond before maturity (assuming no call premium and constant interest rates) is the

Question

Use the present value and future value tables included in Appendix 8 and on the textbook companion website. 
-The net amount required to retire a bond before maturity (assuming no call premium and constant interest rates) is the

Quizplus · Accepted Answer

The net amount required to retire a bond before maturity is the face value of the bond plus any unamortized premium or minus any unamortized discount. This is because the bondholder will receive the face value of the bond when it is retired, but if there is an unamortized premium or discount, it must be accounted for in the net amount required. If there is an unamortized premium, it will increase the net amount required, and if there is an unamortized discount, it will decrease the net amount required.

Use the Present Value and Future Value Tables Included in Appendix