On January 1, 2021, Devils Inc. invested in 6 years, $200,000, 4% bonds for $189,849. Effective interest rate is 5%. Interests are paid annually on December 31. The bonds are managed on a contractual yield basis where the business model requires Devils Inc. to hold it to maturity. Devils Inc. follows IFRS, uses the amortized cost method on this investment, and has a December 31 year end. Calculate how much of the carrying value of the bond will be increased (decreased) from January 1, 2022 to December 31, 2022.

a.

increase by $1,692

b.

decrease by $1,418

c.

increase by $1,492

d.

decrease by $1,492

e.

increase by $1,567