On November 1, 2020, Mack Co. purchased a 5-year, 8% bond with a face value of $ 200,000. The purchase price of $ 184,556 was consistent with a 10% yield. Interest is payable semi-annually on January 1 and July 1. The bonds mature on January 1, 2022. The amortized cost of the bond on the maturity date is

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Quizplus · Accepted Answer

The amortized cost of the bond on the maturity date will be its face value, $200,000, because over the bond's life, the discount (the difference between purchase price and face value) is amortized, bringing the book value of the bond to its face value at maturity.