Completing a Bond Amortization Table (Effective Interest Rate)

MacBride Enterprises sold \(\$ 200,000\) of bonds on December 31, 2018. A portion of the amortization table appears below.

\section*{Required:}
1. Indicate the stated annual interest rate on these bonds.
2. Calculate the effective annual interest rate on these bonds. (Note; Round to the nearest \(0.1 \%\).)
3. Determine the interest expense and premium amortization for the interest period ending December 31, 2020. (Note: Round to the nearest dollar.)
4. Determine the year in which the bonds will be repaid in full based on the above terms.
\section*{Exercise

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Cash Interest Payment Expense Premium on Bonds Payable Balance Premium on Bonds Bond Payable Carrying Value Period (Credit) (Debit) Payable (Debit) (Credit) (Credit) At issue $6,457 $206.457 06/30/19 $9,000 $8,465 $535 5,922 205.922 12/31/19 9,000 8.443 557 5,365 205,365 06/30/20 9,000 8,420 580 4,785 204,785 12/31/20 ? ? ? ? ?