Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2012 Bonds issuance 2014 Notes issuance 2017 Notes issuance 2020 Notes issuance 2021 Notes issuance Maturities (1) Stated Interest Rates Effective Interest December 31,
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started