General Investment Co. (GIC) purchased bonds on January 1, 2012. GIC's accountant has projected the following amortization schedule from purchase until maturity: GIC purchased the bonds for:

Question

General Investment Co. (GIC) purchased bonds on January 1, 2012. GIC's accountant has projected the following amortization schedule from purchase until maturity:  GIC purchased the bonds for:

Quizplus · Accepted Answer

The amortization schedule shows that the bond was purchased at a discount of $5,242 ($200,000 - $194,758), which means that GIC purchased the bonds for $194,758.