Answer:
$3,513,600
Explanation:
The computation fo the carrying value of the bond at the end of third interest period is shown below:
But before that the value of the bond is
= $3,600,000 × 94%
= $3,384,000
Now the difference in amount is
= $3,600,000 - $3,384,000
= $216,000
The interest amount per year would be
= $216,000 ÷ 5 years
= $43,200
For three years it would be
= $43,200 × 3 years
= $129,600
And, finally the carrying value of the bond is
= $3,384,000 + $129,600
= $3,513,600
