On January 1,2010,Tonika Corporation Issued a Four-Year,$10,000,7% Bond

question 89

Multiple Choice

On January 1,2010,Tonika Corporation issued a four-year,$10,000,7% bond.The interest is payable annually each December 31.The issue price was $9,668 based on an 8% effective interest rate.Assuming effective-interest amortization is used,what is the December 31,2011 book value after the December 31,2011 interest payment was made (to the nearest dollar) ?

• A)$9,662
• B)$9,820
• C)$9,668
• D)$9,723

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Definitions:

Atomic Mass

The total number of protons and neutrons in an atom; expressed in atomic mass units or daltons.

Chlorine Atom

A chemical element with symbol Cl and atomic number 17, known for its roles in various chemical reactions and compounds.

Neutrons

Neutral particles found in the nucleus of an atom, contributing to the atom's mass but not its charge.

Protons

Positively charged subatomic particles found in the nucleus of an atom.