On January 1, 2017, GRL Inc Compute the Carrying Value of the Investment at the End

Essay

On January 1, 2017, GRL Inc. purchased, in U.S. Funds $500,000 of Bonds of the OBY Company. On that date, the Bonds were trading at par. These Bonds pay 10% interest annually each December 31. The Bonds mature on December 31, 2019. The following exchange rates were applicable between 2017 and 2019. The rates indicate the cost (in Canadian dollars) of purchasing 1 U.S. dollar:
$\begin{array}{|l|l|}\hline \text { January } 1,2017 & \text { CDN \$1.4565 } \\\hline \text { Average rate for } 2017 & \text { CDN } \$ 1.4570 \\\hline \text { December } 31,2017 & \text { CDN } \$ 1.4725 \\\hline \text { Average rate for } 2018 & \text { CDN } \$ 1.4600\\\hline \text { December } 31,2018 & \text { CDN } \$ 1.4425 \\\hline \text { Average rate for } 2019 & \text { CDN } \$ 1.4500 \\\hline \text { December } 31,2019 & \text { CDN } \$ 1.4575 \\\hline\end{array}$ Compute the carrying value of the investment at the end of each year: