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Actually do the question and explain it. Please do not copy other Chegg question. L'Oreal, a beauty product company, issues ( $ 100 ) face
Actually do the question and explain it. Please do not copy other Chegg question.
L'Oreal, a beauty product company, issues \\( \\$ 100 \\) face value bonds at the price of \\( \\$ 60 \\). The maturity of the bond is 2 years and the bond pays coupons every six months. Which of the following statement is NOT correct? A. After 1 year and a half, after the payment of a third coupon, the value of the bond recorded in the balance sheet of L'Oreal is \\( \\$ 90 \\). B. The amortization value at the time of each coupon payment is \\( \\$ 10 \\). C. At maturity date, when amortization is complete, the redemption value (ignoring the final coupon) to get rid of the bonds from the balance sheet will be \\( \\$ 100 \\). D. The change in equity at the time of each coupon payment due to amortisation alone is a gain of \\( \\$ 10 \\). E. At the time of each coupon payment, the value of the bond in the balance sheet increases by \\( \\$ 10 \\)Step by Step Solution
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