Question
Auerbach Inc. issued 4% bonds on October 1, 2018. The bonds have a maturity date of September 30, 2028 and a face value of $470
Auerbach Inc. issued 4% bonds on October 1, 2018. The bonds have a maturity date of September 30, 2028 and a face value of $470 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2019. The effective interest rate established by the market was 6%. Assuming that Auerbach issued the bonds for $352,856,000, what would the company report for its net bond liability balance after its first interest payment on March 31, 2019, rounded up to the nearest thousand?
Multiple Choice
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$355,227,360.
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$352,856,000.
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$351,670,320.
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$354,041,680.
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