Vodafone Group Plc reports the following information among its bonds payable as of March 31, 2015 (pounds

Question:

Vodafone Group Plc reports the following information among its bonds payable as of March 31, 2015 (pounds in millions).

Financlal Long-Term Llabilities Measured at Amortized Cost £ millions Nominal (par) Value Falr Value Carrying Value 4.6

a. What is the par value of the 4.625% bond issuance? What is its book (carrying) value?
b. Was the 4.625% bond sold at a discount or a premium? Explain.

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...