Consolidated Enterprises issues €10 million face value, fi ve-year bonds with a couponrate of 6.5 percent. At the time of issuance, the market interest rate is 6.0 percent. Usingthe eff ective interest rate method of amortisation, the carrying value after one year will beclosest to:A . €10.17 million.B . €10.21 million.C . €10.28 million.

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