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22. Lopez Plastics issued bonds on January 1, 2016. The face value of the bonds is $200.000. The bonds sold for $207.020. Cash paid with
22. Lopez Plastics issued bonds on January 1, 2016. The face value of the bonds is $200.000. The bonds sold for $207.020. Cash paid with each payment is 57.000. Interest expense is 56.211 (rounded to nearest dollar) from the first payment. Lopez uses the effective interest method of amortization. What is the annual effective rate of interest? 3.396 b. 3.5 C. 696 d. 796 e none of the above
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