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Carrying value of the bonds using straight-line amortization

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A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2006. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,145. Using straight-line amortization, what is the carrying value of the bonds on December 31, 2008?

A. $19,663,523

B. $19,670,231

C. $19,633,834

D. $19,940,622

Reference no: EM13157786

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