When bonds are retired at maturity ________.
A) the bondholders are paid the face value plus the unamortized premium or less the unamortized discount
B) the carrying value equals the face value plus the unamortized premium or less the unamortized discount
C) the carrying value always equals the face value
D) the entry to retire the bonds may include a gain or loss on retirement of bonds

Question

Quizplus · Accepted Answer

When bonds are retired at maturity, the carrying value always equals the face value because any premium or discount associated with the bond issuance would have been fully amortized by the maturity date.

When Bonds Are Retired at Maturity ________