Effective-interest amortization problem

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Reference no: EM13157772

A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2007. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,145. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2007, balance sheet?

A. $19,608,310

B. $19,612,643

C. $19,625,125

D. $20,000,000

Reference no: EM13157772

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