Company A And Company B Both Issued 10 Million In Term Bonds On The Same Day With Th 3615474

Company A and Company B both issued $10 million in term bonds on the same day with the same maturity date. Yet, the beginning book value of the reported liability differed between the companies – correctly. Why would the same bond amounts with the same maturity date be reported at differing amounts? How are bond prices computed?

Prof. Angela


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