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Bond Amortization Using Effective Interest Rate Method : A company issues a $100,000 bond at a discount, receiving $95,000 in proceeds. The bond has a

Bond Amortization Using Effective Interest Rate Method: A company issues a $100,000 bond at a discount, receiving $95,000 in proceeds. The bond has a 5-year term with a coupon rate of 5%, payable annually. The effective interest rate is 6%. Calculate the interest expense for the first year using the effective interest rate method.

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