Vodafone Group Plc reports the following information among its bonds payable as of March 31, 2009 (pounds in millions).
|
Financial Long Term Liabilities Measured at Amortised Cost |
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|
(£ millions) |
Nominal (par) Value |
Carrying Value |
Fair Value |
|
4.625% (US dollar 500 million) bond |
£350 |
£392 |
£315 |
|
due July 2018 |
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a. What is the par value of the 4.625% bond issuance? What is its book (carrying) value?
b. Was the 4.625% bond sold at a discount or a premium? Explain.