If $100,000 (face value) in bonds are issued at 98, then the bonds were issued a...

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If $100,000 (face value) in bonds are issued at 98, then the bonds were issued a a. premium of $2,000. discount of $2,000, C.

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Answer 1

Answer #1

Face value = $100,000

Issued at 98

Bonds issued value = $100,000 * 98 /100

Bonds issued value = $98,000

Discount = $100,000 - $98,000 = $2,000

SO, Discount = $2,000

So, Discount of $2,000 is right answer

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Answer 2

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