Whether a bond is sold at a discount or a premium,its carrying value will equal its face value on the maturity date.

Question

Quizplus · Accepted Answer

This statement is true. The carrying value of a bond refers to its accounting value on the balance sheet, which is calculated by amortizing any discount or premium on the bond over the term of the bond. On the maturity date, the carrying value of the bond will have been fully amortized, resulting in it equaling the face value of the bond.

Whether a Bond Is Sold at a Discount or a Premium,its