On january 1, 2016, tonika company issued a five-year, $10,000, 9% bond. the interest is payable annually each december 31. the issue price was $9,621 based on an 10% effective interest rate. tonika uses the effective-interest amortization method. the book value of the bonds as of december 31, 2016 is closest to:

A) Interest Expense is $577.6

B) $9683

Explanation:

Given data:

Issued amount $10,000 at 9%

a.

Interest Expense = $9,621 × 6%

                            = $577.6

Interest Expense is $577.6

b.

The book value of the bonds as of December 31, 2016 is calculated in excel and screen shot provided below:

par value of bond is $10,000

coupon rate 9%

Annual coupon payment

time of year remaining 5 year

YTM 10%

INTEREST expense for 2016

Ammortization of bond discount = 962 - 900 = 62

Book value of bond on 31 dec 2016 = 9621 + 62 = $9683

i guess you could put raise the economic balance

answer; how many employees will be needed for jobs in the coming period;