If the amortized cost of a $7,000, 5-year bond issued at 8% decreases over the life of
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Question:
If the amortized cost of a $7,000, 5-year bond issued at 8% decreases over the life of the bond, this indicates that: (choose the correct answer)
book value of inventory will decrease correspondingly.
the bond was issued at a premium.
prepaid expenses will decrease correspondingly.
the issuing company has a cash flow problem.
Expert Answer:
ANSWER B the bond was issued at a premium When a bond is issued at a premium that means that the bon... View the full answer
Related Book For 
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
Posted Date:
