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Cherry Corporation issued $10,000,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization
Cherry Corporation issued $10,000,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Decrease in Outstanding Payment CashInterest Balance 400,000 344,632 400,000 342,971 400,000 341 400,000 Balance 11,487,747 11,432,379 11,375,350 11,316,611 55,368 57,029 58,739 ,261 a. What is the selling price of the bond issue? (1 point b. What is the annual stated interest rate on the bonds? (3 points) c. What is the annual effective interest rate on the bonds? (3 points) d. What is the total cash payments over the term of the bond? (2 points) e. What is the total interest expense over the term of the bond? (3 points) Hint there is a short method
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