Question: AI Tool and Dye issued 8 % bonds with a face amount of $ 1 6 0 million on January 1 , 2 0 2

AI Tool and Dye issued 8% bonds with a face amount of $160 million on January 1,2024. The bonds sold for $150 million. For bonds of similar risk and maturity the market yield was 9%. Upon issuance, AI elected the option to report these bonds at their fair value. On June 30,2024, the fair value of the bonds was $145 million as determined by their market value on the NASDAQ.

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