The carrying value of bonds will equal the market price
A)every six months on the date interest is paid.
B)at the close of every trading day.
C)at the end of the fiscal period.
D)on the date of issuance.
The carrying value is equal to the market price on the date of
issuance.
After issuance, the bond's price fluctuates in relation to market
variables such as demand, supply, market rates, investors'
expectations etc. Only when the bonds are first issued, they are
issued at its carrying value. Once the bond enters the market , its
price becomes a final product of the interaction of various market
variables.
hence the correct option is -d - on the date of issuance.
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