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On January 1, 2010, Tonika Corporation issued a four-year, $10,000, 7% bond. The interest is payable annually each December 31. The issue price was $9,668
On January 1, 2010, Tonika Corporation issued a four-year, $10,000, 7% bond. The interest is payable annually each December 31. The issue price was $9,668 based on an 8% effective interest rate. Assuming effective-interest amortization is used, what is the December 31, 2011 book value after the December 31, 2011 interest payment was made (to the nearest dollar)? Assume annual compounding. A. $9,662 B. $9,820 C. $9,668 D. $9,723
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