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Calculate how much of the carrying value of the bond

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Question - On January 1, 2021, Sabres Inc. invested in 5years, $150000, 5% bond for $143681, Effective interest rate is 6%. Interests are paid annually on December 31. The bonds are managed on a contractual yield basis where the business model requires Sabres inc. to hold it to maturity. Sabres Inc. follows IFRS and has a December 31 year end. Calculate how much of the carrying value of the bond will be increased (decreased from January 1, 2022, to December 31, 2022.

-Increase by $1188

-Decrease by $1121

-Increase by $1121

-Decrease by $1188

-Increase by $1264

Reference no: EM133065399

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