The carrying value of bonds at maturity always equals:
A)the amount of cash originally received in exchange for the bonds.
B)the par value of the bond.
C)the amount of discount or premium.
D)the amount of cash originally received in exchange for the bonds plus any unamortized discount or less any premium.
E)$0.

Question

Quizplus · Accepted Answer

The carrying value of bonds at maturity is equal to their par value, which is established when the bonds are issued and does not change throughout the life of the bond. Therefore, the carrying value of bonds at maturity always equals the par value of the bond.

The Carrying Value of Bonds at Maturity Always Equals