A Company Issues $10,000,000, 7

Multiple Choice

A company issues $10,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2014. Interest is paid on June 30 and December 31. The proceeds from the bonds are $9,802,072. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2014 balance sheet?

A) $9,806,321
B) $10,000,000
C) $9,812,563
D) $9,804,155