The carrying amount of bonds at maturity is always equal to:
A) the amount of cash originally received in exchange for the bonds.
B) the par value that the issuer pays the holder.
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 amount of bonds at maturity is always equal to the par value that the issuer pays the holder, as all discounts or premiums are fully amortized by the maturity date, and the bond is redeemed at its par (or face) value.

The Carrying Amount of Bonds at Maturity Is Always Equal