Question
Computation of Effective Interest Rate On June 30, 2019, Gaston Corporation sold $650,000 of 11% face value bonds for $683,733.82. On December 31, 2019, Gaston
Computation of Effective Interest Rate On June 30, 2019, Gaston Corporation sold $650,000 of 11% face value bonds for $683,733.82. On December 31, 2019, Gaston sold $410,000 of this same bond issue for $390,945.30. The bonds were dated January 1, 2019, pay interest semiannually on each December 31 and June 30, and are due December 31, 2026. Required: Compute the effective yield rate on each issuance of Gaston's 11% bonds. Click here to access the tables to use with this problem. Round your answers to the nearest whole percentage. June 30, 2019 issuance: fill in the blank 1% December 31, 2019 issuance: fill in the blank 2%
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