Question
X2 issued callable bonds on January 1, 2018. The bonds pay interest annually on December 31 each year. X2's accountant has projected the following amortization
X2 issued callable bonds on January 1, 2018. The bonds pay interest annually on December 31 each year. X2's accountant has projected the following amortization schedule from issuance until maturity:
Date Cash Paid Interest Expense Decrease in Carrying Value Carrying Value
1/1/2018$104,212
12/31/2018 $7,000$6,253$747103,465
12/31/2019 7,0006,208792102,673
12/31/2020 7,0006,160840101,833
12/31/2021 7,0006,110890100,943
12/31/2022 7,0006,057943100,000
The X2 bonds have a life of:
Select one or more:
a. 3 years.
b. Cannot be determined from the given information.
c. 4 years.
d. 5 years.
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