Auerbach Inc. issued 8% bonds on October 1, 2021. The bonds have a maturity date...
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Auerbach Inc. issued 8% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $500 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 10%.
Assuming that Auerbach issued the bonds for $437,685,000, what would the company report for its net bond liability balance at December 31, 2021, rounded up to the nearest thousand? (Do not round intermediate calculations.)
A) 427,685,000
B) 438,627,000
C) 499,000,000
D) 447,685,000
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