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QUESTION 1 Telstra, a telecom company, issues $100 face value bonds at the price of $80. The maturity of the bond is 2 years and
QUESTION 1 Telstra, a telecom company, issues $100 face value bonds at the price of $80. The maturity of the bond is 2 years and the bond pays coupons every six months. Which of the following statement is correct? O A. At the time of each coupon payment, the value of the bond in the balance sheet increases by $5. O B. After 1 year and a half, after the payment of a third coupon, the value of the bond recorded in the balance sheet of Telstra is $85. Q c At maturity date, when amortization is complete, the redemption value (ignoring the nal coupon) to get rid of the bonds from the balance sheet will be $95. O D.The amortization value at the time of each coupon payment is $10. O E. The change in equity at the time of each coupon payment due to amortisation alone is a loss of $5
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