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

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

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The bond was redeemed at 104, meaning it was bought back at 104% of its face value. The redemption price is $200,000 * 104% = $208,000. The bond was initially sold at face value, $200,000. Therefore, the corporation incurs a loss of $208,000 - $200,000 = $8,000.

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