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Ajax Ltd. issued $4 million in 4% bonds. The bonds have a 7-year term, 5% annual market interest rate, and pay interest semiannually. When making
Ajax Ltd. issued $4 million in 4% bonds. The bonds have a 7-year term, 5% annual market interest rate, and pay interest semiannually. When making the ninth semiannual payment of $80,000, Ajax recorded $97,245.94, interest and $17,245.94 discount amortization, after which the carrying amount increased to $3,907,083.43. What is the carrying value of the bonds after the tenth semiannual payment?
Question 5 options:
| $3,924,761 |
| $4,000,000 |
| This problem cannot be solved with the information given. |
| $3,889,406 |
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