On a bond's maturity date, its carrying value will equal the:
A) present value of the bond on its issuance date
B) maturity value less all interest payments
C) maturity value plus all interest payments
D) maturity value

Question

Quizplus · Accepted Answer

A bond's carrying value or book value is the amount at which it is recorded on the company's balance sheet. On the maturity date, the bond's carrying value will equal its face value or maturity value, which is the amount the issuer has promised to pay the bondholder at maturity. Therefore, the correct answer is (D) maturity value.

On a Bond's Maturity Date, Its Carrying Value Will Equal