Question

A company issues $50,000 of 4% bonds, due in 5 years, with interest payable semiannually. Assuming a market rate of 3%, the bonds issue for $52,306. Calculate the carrying value of the bonds after the first semiannual interest payment.
a. $51,306.
b. $52,091.
c. $49,000.
d. $51,521.

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