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Computation of Effective Interest Rate On June 30,2019, Gaston Corporation sold $770,000 of 9% face value bonds for $812,806,16. On December 31,2019, Gaston sold $350,000

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Computation of Effective Interest Rate On June 30,2019, Gaston Corporation sold $770,000 of 9% face value bonds for $812,806,16. On December 31,2019, Gaston sold $350,000 of this same bond issue for $332,677,40, The bonds were dated January 1, 2019, pay interest semiannually an each December 31 and June 30, and are due December 31,2026 . Required: Compute the effective yield rate on each issuance of Gaston's 9% bonds. Click here to access the tables to use with this problem. Round your answers to the nearest whole percentage. Juhe 30,2019 issuance: x% December 31,2019 issuance: x% Feesback 7 Creck My Woin June 30: You should determine the selling price by using the effective rate to determine the present value of both the future principal and periodic interest payments. When interest is paid semiannually, you should divide the effective rate by the interest periods per year to determine the effective rate per semiannual period (for example, 12%2 periods =6% semiannual rate). You should also express the time to maturity in semiannual periods (for example, 5 year bonds x2 periods =10 semiannual periods). You should use the same number of interest periods for both principal and interest calculations. If the seiling price and the cash flows are known, the effective interest rate can be found through trial and error. December 31: You should determine the selling price by using the effective rate to determine the present value of both the future principal and periodic interest payments. When interest is paid semiannually, you should divide the effective rate by the interest periods per year to determine the effective rate per semiannua period (for example, 12%+2 periods =6% semiannual rate). You should also express the time to maturity in semiannual periods (for example, 5 year bonds x ? periods =10 semiannual periods). You should use the same number of interest periods for both principal and interest caiculations. If the selling price and the cash flows are known, the effective interest rate can be found through trial and error

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