question archive A company has bonds outstanding with a par value of $100,000
A company has bonds outstanding with a par value of $100,000
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A company has bonds outstanding with a par value of $100,000. The unamortized premium on these bonds is $2,700. If the company retired these bonds at a call price of 99, the gain or loss on this retirement is:
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Answer:
the gain or loss on this retirement is=2700+(1-(99/100))*100000
=3700 is answer
1000 extra gain is due to retirement below the book value
