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On 1 / 1 / 2 0 0 9 ABC. Inc. purchases a 5 - year $ 1 , 0 0 0 , 0 0
On ABC. Inc. purchases a year $ bond requiring semiannual interest payments from XYZ Inc. Interest payments are scheduled to occur on and each year. They classify this investment as "Held to Maturity". ABC, Inc. pays an amount for the bond that creates an effective yield of Over the next years interest rates rise and on ABC, Inc. decides to sell their bond so that they can reinvest the proceeds into an investment with lower risk and a higher yield. At the time of the sale the bond owned by ABC, Inc. is yielding What will the carrying value of the bond amortized cost be at the time of sale?
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