Using the effective interest rate method of amortization

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Reference no: EM13879624

Consolidated Enterprises issues €10 million face value, five-year bonds with a coupon rate of 6.50 percent. At the time of issuance, the market interest rate is 6.0 percent. Using the effective interest rate method of amortization, the carrying value after one year will be closest to:

a) €10.17 million

b) €10.21 million

c) €10.28 million

Reference no: EM13879624

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Using the effective interest rate method of amortization : Consolidated Enterprises issues €10 million face value, five-year bonds with a coupon rate of 6.50 percent. At the time of issuance, the market interest rate is 6.0 percent. Using the effective interest rate method of amortization, the carrying value..

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