When a bond premium is being amortized,at maturity
A)the premium will be equal to the face value of the bonds
B)the premium is written off and a gain or loss is recorded
C)the carrying value of the bond is equal to the face value of the bonds
D)the carrying value of the bond will be greater than original issue price

Question

Quizplus · Accepted Answer

When a bond premium is being amortized, at maturity the carrying value of the bond will be equal to the face value of the bonds. This means that the premium has been gradually written off over the life of the bond and is no longer reflected in the carrying value at maturity. There is no gain or loss recorded, and the carrying value will not be greater than the original issue price.

When a Bond Premium Is Being Amortized,at Maturity