In Germany, prudence is an accounting principle established in commercial law. What does "prudence" mean in an accounting context?

Internal failure costs are associated with scrap, rework, and downtime

Indicate whether the statement is true or false

Flyover Airlines Inc issued 20-year, 8% per annum semi-annual coupon bonds at their face value of $1,000. Immediately after issue a major disaster befell the airline and the yield to maturity on their bonds rose to 15%. per annum

What is the new price of the firm's bonds? A) $559.20 B) $613.22 C) $1,000 D) $1324.18