Bank below par debt repurchase accounting

Dear WSO,

I am currently looking into banks accounting and would like to understand how banks' repurchase of their own debt would be accounted on their financial statements.

For example, a bank has a 500m bond outstanding trading at 80 on the dollar, what would happen if the bank repurchases all of it with 400m in cash?

Thanks you for your help!

1 Comments
 

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