A company, whichprepares its financial statements in accordance with IFRS issues £5,000,000face value ten year bonds on January 1, 2010 when interest rates are 5.50%. Thebonds carry a coupon of 6.50%, with interest paid annually on December 31. The carryingvalue of the bonds as of December 31, 2011 will be closest to:
A. £4,695,562. B. £5,301,000. C. £5,316,000.
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