On January 1, 2010, New Company purchased $200, 000 of ten-year 10% bonds of Old Company for $226, 840.Interest is payable annually.The effective yield on the investment is 8%.What is the balance in New's investment in held-to-maturity bonds account (rounded to the nearest dollar, if necessary) at December 31, 2011?
A) $228, 693
B) $226, 840
C) $224, 987
D) $222, 986
Correct Answer:
Verified
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