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On January 1, 2013, $1,000,000, 5-Year, 5% Bonds, Were Issued

Question 28

Multiple Choice

On January 1, 2013, $1,000,000, 5-year, 5% bonds, were issued for $957,349. The interest rate in effect when the bonds were issued was 6%. Interest is paid semi-annually on January 1 and July 1. What would be the amortized cost of the bonds on January 1, 2014?


A) $1,000,000
B) $957,345
C) $961,069
D) $961,845

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