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BONDS ISSUED AT FACE VALUE ON AN INTEREST DATE ABC Company's accounting year ends on December 31. On December 31, 200A, ABC issued 10-year, 12%
BONDS ISSUED AT FACE VALUE ON AN INTEREST DATE ABC Company's accounting year ends on December 31. On December 31, 200A, ABC issued 10-year, 12% bonds with a face value of 100,000. The bonds are dated December 31, call for semi-annual interest payments on June 30 and December 31, and mature in 10 years on December 31. ABC made the required interest and principal payments when due. REQUIRED: 1. What is the nominal rate and effective rate of interest
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