[The Following Information Applies to the Questions Displayed Below

question 54

Multiple Choice

[The following information applies to the questions displayed below.]

On January 1, Year 1, Weller Company issued bonds with a $400,000 face value, a stated rate of interest of 10%, and a 10-year term to maturity. Weller uses the effective interest method to amortize bond discounts and premiums. The market rate of interest on the date of issuance was 8%. Interest is paid annually on December 31.

-Assuming Weller issued the bonds for $431,940,what is the carrying value of the bonds on the December 31,Year 3?

• A)$420,615
• B)$426,495
• C)$414,264
• D)$404,800

Understand the concept of opportunity cost and how it varies between countries.

Recognize the benefits of trade between countries based on the principle of comparative advantage.

Analyze the concept of absolute advantage in the production of goods.

Interpret production possibility frontiers and their implications for trade and specialization.