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On 1 / 1 / 2 0 0 9 ABC. Inc. purchases a 5 - year $ 1 , 0 0 0 , 0 0

On 1/1/2009 ABC. Inc. purchases a 5-year $1,000,000,6% bond requiring semiannual interest payments from XYZ, Inc. Interest payments are scheduled to occur on 630 and 1231 each year. They classify this investment as "Held to Maturity". ABC, Inc. pays an amount for the bond that creates an effective yield of 5%. Over the next 3 years interest rates rise and on 11?2012 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 8%. What will the carrying value of the bond (amortized cost) be at the time of sale?
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