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A company sold a $1 million issue of bonds with a 15 year life, paying 4 percent interest per year. The bonds were sold at
A company sold a $1 million issue of bonds with a 15 year life, paying 4 percent interest per year. The bonds were sold at par value. If the company paid a selling fee $50,000 and has an annual expense of $70,256 for mailing and record keeping, what is the true rate of interest that the company is paying for the borrowed money?
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