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a) 10.0% b) 5.0% c) 4.5% d) 9.0% General Investment Co. (GIC) purchased bonds on January 1, 2021. GIC's accountant has projected the following amortization
a) 10.0% b) 5.0% c) 4.5% d) 9.0% General Investment Co. (GIC) purchased bonds on January 1, 2021. GIC's accountant has projected the following amortization schedule from purchase until maturity: Interest Revenue Amortization of Discount Cash Received Date 1/1/2021 6/30/2021 12/31/2021 6/30/2022 12/31/2022 6/30/2023 12/31/2023 $5,850 5,850 5,850 5,85 5,850 5,850 $6,335 6,359 6,385 6,412 6,440 6,468 $485 509 535 562 590 618 Amortized Cost $126,701 127,186 127,695 128,230 128,792 129, 382 130,000 What is the annual market interest rate on the bonds
a) 10.0%
b) 5.0%
c) 4.5%
d) 9.0%
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