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2012 Bonds issuance 2014 Notes issuance 2017 Notes issuance 2020 Notes issuance 2021 Notes issuance Maturities (1) Stated Interest Rates Effective Interest December 31,

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2012 Bonds issuance 2014 Notes issuance 2017 Notes issuance 2020 Notes issuance 2021 Notes issuance Maturities (1) Stated Interest Rates Effective Interest December 31, Rates 2021 2022 2024-2044 2023-2057 2.50% 2.66% 1,250 3.80% 4.95% 3.90%-5.11% 4,000 2.40% 5.20% 2.56%-4.33% 16,000 2023-2060 0.40% -2.70% 0.56% -2.77% 10,000 2023-2061 0.25%-3.25% 0.35% -3.31% 18,500 50.353 (318) (1,491) S 48,744 Total face value of long-term debt Unamortized discount Less current portion of long-term debt Total carrying value of long-term debt (1) Interest on the Bonds and Notes is payable semi-annually. Focus on the bonds issued in 2012 which will mature in 2022. Amazon issued the 2012 bonds ($1,250 face value, 2.5% stated interest rate) at 98.64% for about $1.233 million because the effective interest rate at the issuance date was 2.66%. If Amazon uses straight-line amortization, what is the carrying value of 2012 bonds after the first interest payment? O $1,250 million $1,233 million $1,233.85 million. O $1.251.7 million

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