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If a bond's market value drops from $1,000 to $950 after one year, and the bond investor classifies the bond as Trading, then the effect
If a bond's market value drops from $1,000 to $950 after one year, and the bond investor classifies the bond as Trading, then the effect of this change on the bondholder's (i.e., lender's) accounting equation is: Decrease an asset by $950; decrease owners' equity by $950 increase an asset by $950; decrease owners' equity by $950 increase an asset by $50; decrease owners' equity by $50 Decrease an asset by $50; decrease owners' equity by $50
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