Question

Which of the following four companies will have the lowest carrying value on their bonds if they decide to redeem their bonds before the maturity date? Assume each company’s bonds have a face value of $15 million and 10% of the premium or discount is unamortized at the time of redemption.

Answer 1

C : Company 1 sold their bonds at 94 and redeemed them at 106.

Step-by-step explanation:

The lesser carrying value of the bond would be issued at the lesser price. Whenever it is redeemed so the carrying value would always be less. Also the redemption does not create any difference plus it is redeemed at a higher price

So according to the given options the option C is correct

And, the same is to be considered as it is met the given situation