I had no idea about this one!
I remember A is my answer, 68 gain/loss, forgot.
HATED that one, no idea.
yeah i had no clue i chose 400k losss like a dumba$$
I calculated 280,000 gain but i don’t why on the earth did i chose 680,000 loss which seems wrong.
ihose 400k loss, the 280 gain would have been an economic gain only right?
I think I went with 280 gain b/c it wasn’t extravagent and the company wouldn’t reissue unless they could make a profit. How is that for a guess?
amberpower Wrote: ------------------------------------------------------- > I think I went with 280 gain b/c it wasn’t > extravagent and the company wouldn’t reissue > unless they could make a profit. How is that for a > guess? Wowwwwww
I chose $400k. When they sold the bond, the liability was still the same on the balance sheet and they redeemed it for $400k more. Has nothing to do with the second bond and nothing to do with the coupon (that shows up on the I/S in a different transaction).
It’s GREAT for a guess. Hope CFA will give you credit for this great guess. 
Can I have 1/2 credit for ALLL my guesses?
amberpower Wrote: ------------------------------------------------------- > I think I went with 280 gain b/c it wasn’t > extravagent and the company wouldn’t reissue > unless they could make a profit. How is that for a > guess? I believe I picked 280 gain as well, and if I remember right, I did TVM to calculate the amounts and it was a gain of 280…
I chose $400K. The second bond has nothing to do with it!
yep 400k. This is pure accounting question, nothing to do with economic gain/loss. Hope I’m right… Milos
that was my thought too. Whatever they issued the second for, they still lost the 400 by calling at 104 an issue previous issued at par.
ok good. so my 400k loss is right i guess.
i put the 280, but i can’t really remember the question to well
Felt very confident on $400,000!
400 loss for me as well. i thought this one was very straight forward.
yes, finally I remember it. I put 400.