Consolidated enterprises issues euro10 million face value


Consolidated Enterprises issues €10 million face value, five-year bonds with a coupon rate of 6.50 percent. At the time of issuance, the market interest rate is 6.0 percent. Using the effective interest rate method of amortization, the carrying value after one year will be closest to:

a) €10.17 million

b) €10.21 million

c) €10.28 million

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Financial Management: Consolidated enterprises issues euro10 million face value
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