A Company Issues $20,000,000, 7

Multiple Choice

A company issues $20,000,000, 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 $19,604,144. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2014 balance sheet?

A) $19,612,642
B) $20,000,000
C) $19,625,124
D) $19,608,308