Question
An issuer of 2 years maturity bonds with a $100 face value providing a 4% coupon rate paid every six months was issued with a
An issuer of 2 years maturity bonds with a $100 face value providing a 4% coupon rate paid every six months was issued with a premium of $4.
The payment by the issuer of one coupon combined with the amortization of the premium over the life of the bond results in
| A. | a decrease in retained profits by $3. | |
| B. | a decrease in retained profits by $4. | |
| C. | a decrease in retained profits by $1. | |
| D. | a decrease in retained profits by $8. |
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Intermediate Accounting
Authors: kieso, weygandt and warfield.
IFRS Edition
978-1118443965, 1118800532, 9781118800539, 978-0470873991
