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On November 1, 2020, Mack Co

Question 13

Multiple Choice

On November 1, 2020, Mack Co. purchased a 5-year, 8% bond with a face value of $ 200,000. The purchase price of $ 184,556 was consistent with a 10% yield. Interest is payable semi-annually on January 1 and July 1. The bonds mature on January 1, 2022. The amortized cost of the bond on the maturity date is


A) $ 185,556.
B) $ 195,000.
C) $ 200,000.
D) $ 190,000.

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