Question: Consolidated Enterprises issues $30 million face value, five year bonds with a annual coupon rate of 5.5%. At the time of issuance, the market interest

Consolidated Enterprises issues $30 million face value, five year bonds with a annual coupon rate of 5.5%. At the time of issuance, the market interest rate is 5.0%. Using the effective interest rate method of amortization, the carrying value after one year will be closest to:

A) $30.44 million

B) $30.53 million

C) $30.65 million

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