What will the carrying value of the bonds be on december

Reference no: EM13257654

What would be the answer to this question and how did youfigure it?
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 December31. The proceeds from the bonds are $19,604,145. Usingeffective-interest amortization, what will the carrying value of the bonds be on the December 31, 2007 balance sheet?

$19,612,643
$20,000,000
$19,625,125
$19,608,310

Reference no: EM13257654

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