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What is the carrying value of the debt security

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Reference no: EM133119602

Question - A firm purchased a 4-year, $40,000 bond at face value on July 1, 2017. The bond's stated interest rate is 5%, paid annually on June 30. The firm has the intent and the ability to hold the bond for the full four years. As a result of changes in the overall economy, the bond had a fair value of $41,000 on July 1, 2018, and $42,000 on July 1, 2019. What is the carrying value of the debt security on July 1, 2018, and 2019, respectively?

Reference no: EM133119602

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