Question: A company issues $3,000,000 face value of five-year bonds dated 1 January 2015 when the market interest rate on bonds of comparable risk and terms

A company issues $3,000,000 face value of five-year bonds dated 1 January 2015 when the market interest rate on bonds of comparable risk and terms is 4%. The bonds pay 3% interest annually on 31 December. Based on the effective interest rate method, what is the carrying amount of the bonds on 31 December 2015?

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