A $2000 bond is redeemable at 102 in 6 years.The absolute value of the sum of the write downs (book value adjustment column)is $53.42.What is the price of the bond?
A)$2093.42
B)$2053.42
C)$1986.58
D)$1946.58

Question

Quizplus · Accepted Answer

The absolute value of the sum of the write downs is the difference between the face value of the bond and the price of the bond. Therefore, the price of the bond is $2000 - $53.42 = $1946.58.

A $2000 Bond Is Redeemable at 102 in 6 Years