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5. The following is taken from XYZ's 2021 annual report: (15 points) Long-term Debts December 31 (in millions) 8% debenture, $200 million face value Zero

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5. The following is taken from XYZ's 2021 annual report: (15 points) Long-term Debts December 31 (in millions) 8% debenture, $200 million face value Zero coupon bonds, 250 million face value 2021 $ 226.4 2020 $ 229.9 $80.49 $90.15 The only transactions associated with the above bonds are related to annual interests. The interest payment day is 12-31 of the year. Based on the above information, answer the following questions. (1) For the debenture, how much interest expense did the company record during 2021? How much interest did the company pay during 2021? What is the effective interest rate? Interest Expense: Interest Paid: Effective Interest Rate: (2) For the zero coupon bonds, how much interest expense did the company record during 2021? What is the effective interest rate? Interest Expense: Effective Interest Rate

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