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Why is the face value deducted over time

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Why does a premium received on a bond have an account that is being payed off? I would assume that it is lequidated and the bond is simply payed at the face value of x dollars? Why is the face value deducted over time? Why is a 200,000 bond selling at 103 not still a 200,000 bond if the company gets the extra 6,000?

Reference no: EM132363289

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