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A Company Issues $20,000,000, 7

Question 34

Multiple Choice

A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2013. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,144. Using straight-line amortization, what is the carrying value of the bonds on December 31, 2015?


A) $19,670,232
B) $19,940,624
C) $19,633,832
D) $19,663,522

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