Other things equal, an increase of treasury bonds from $100 billion to $120 billion in the economy woulda) not change the size of the public debt. b) decrease the public debt by $20 billion. c) increase the public debt from $460 billion to $480 billion. d) increase the public debt from $400 billion to $420 billion.

On january 1, year 1, purl corp. purchased as a long-term investment $500,000 face amount of shaw, inc.’s 8% bonds for $456,200. the bonds were purchased to yield 10% interest. the bonds mature on january 1, year 6, and pay interest annually on january 1. purl uses the effective interest method of amortization. what amount (rounded to nearest $100) should purl report on its december 31, year 2, balance sheet for these held-to-maturity bonds?