A company purchased bonds on July 1, 2021, for $274,885. This price represents a market rate of 6% on bonds that have a face amount of $250,000, have a stated rate of 8%, pay semiannual interest, and mature in 6 years. Calculate the amortized cost of the bonds as of December 31, 2021.
A. $266,638.
B. $276,638.
C. $273,132.
D. $264,885.
Answer: C
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