Response to the following problem:
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
(£ millions) Nominal (par) Value Carrying Value Fair Value
4.625% (US dollar 500 million) bond
due July 2018 . . . . . . . . . . . . . . . . . . . . . £350 £392 £315
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.