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The following note on long-term debt is excerpted from Amazon's 2020 annual report which was issued in February, 2021. AMAZON.COM, INC. NOTES TO CONSOLIDATED FINANCIAL
The following note on long-term debt is excerpted from Amazon's 2020 annual report which was issued in February, 2021. AMAZON.COM, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 6 - DEBT (in millions) Interest on the Bonds and Notes is payable semi-annually. Focus on the bonds issued in 2012 which will mature in 2022. Amazon issued the 2012 bonds ($1,250 face value, 2.5% stated interest rate) at 98.64% for about $1,233 million because the effective interest rate at the issuance date was 2.66%. If Amazon uses straight-line amortization, what is the carrying value of 2012 bonds after the first interest payment? $1,251.7 million $1,250 million $1,233.85 million $1,233 million
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