Question: need a answer please facing deficulty 6. What are three reasons why bonds might be redeemed before their maturity date? Answer - a 7. Why

need a answer please facing deficulty 6. What are three reasons

need a answer please facing deficulty

6. What are three reasons why bonds might be redeemed before their maturity date? Answer - a 7. Why would investors pay a premium for a corporate bond? Why would a corporation issue its bonds at a discount? Explain, using the relationship between the bond contract interest rate and the prevailing market interest rate. Answer - 8. How is an unamortized bond premium or discount disclosed in accordance with GAAP? Answer - 9. If the bond contract interest rate is greater than that required in the market on the date of issue, what is the effect on the selling price of the bond? Why? Answer - 10. What are two different methods used to amortize premiums and discounts? Explain

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