Question: Consolidated Enterprises issues 1 million face value, five-year bonds with a coupon rate of 1 percent. At the time of issuance, the market interest rate

Consolidated Enterprises issues 1 million face value, five-year bonds with a coupon rate of 1 percent. At the time of issuance, the market interest rate is 2.0 percent. Using the effective interest rate method of amortisation, calculate the carrying value after one year?

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