When callable bonds are redeemed below carrying value gain on Redemption of Bonds is credited
Option A
Explanation:
A callable bond is a bond form that requires the bondholder to maintain the right of redeeming the bonds at some stage it develops before the bond.
Essentially, a callable bond helps the borrower to redeem its obligations at an early stage. If market rates shift in the desired direction to require them to borrow at a more competitive rate, an organization can choose to call its bond.
The competitive interest or discount rate rewards the borrower from a callable bond.
A redeemable bond is another name for a callable bond.
