An 8%, P1,000 bond issued to yield 10% has 6 years remaining in its term. The bond pays interest annually; the next interest payment is due on year from today. What is the issuer’s carrying amount of the bond using the interest method of amortizing bond discount and premium? A. 913 B. 633 C. 667 D. 819

Principles of Accounting Volume 1
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Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 8MC: On October 1 a company sells a 3-year, $2,500,000 bond with an 8% stated interest rate. Interest is...
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An 8%, P1,000 bond issued to yield 10% has 6 years remaining in its term. The bond pays interest annually; the next
interest payment is due on year from today. What is the issuer’s carrying amount of the bond using the interest method
of amortizing bond discount and premium?

A. 913 B. 633 C. 667 D. 819

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