A Company Issues $10,000,000, 7

question 103

Multiple Choice

A company issues $10,000,000, 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 $9,802,072. Using straight-line amortization, what is the carrying value of the bonds on December 31, 2015?

• A) $9,835,115
• B) $9,970,311
• C) $9,816,916
• D) $9,831,761

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Definitions:

Financially Independent

refers to having sufficient personal wealth to afford living expenses without depending on employment income or financial support from others.

Cohabitating

Living together in a romantic relationship without being married.

Adulthood

A life stage characterized by full physical development, legal responsibility, and capability for mature relationships and decision-making.

Cardiovascular Fitness

The ability of the heart, blood cells, and lungs to supply oxygen-rich blood to the working muscle tissues and the ability of these tissues to use oxygen to produce energy for movement.