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40 Discount-Mart issues $11 million in bonds on January 1, 2021. The bonds have a seven-year term and pay interest semiannually on June 30 and
40 Discount-Mart issues $11 million in bonds on January 1, 2021. The bonds have a seven-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Cash Paid Interest Expense Increase in Carrying Value Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 eBook $440,000 440,000 440,000 440,000 $495,557 498,335 501, 252 504, 315 Carrying Value $ 9,911,149 9,966,706 10,025,041 10,086,293 10, 150, 608 $55,557 58,335 61,252 64,315 What is the stated annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your intermediate calculations.) Multiple Choice 4% 10%. 9% 0
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