CoronadoCompany sells8% bonds having a maturity value of $2,020,000for $1,866,850. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1.

Determine the effective-interest rate.(Round answer to 0 decimal places, e.g. 18%.)

The effective-interest rate%

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Set up a schedule of interest expense and discount amortization under the effective-interest method.(Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 38,548.)

Schedule of Discount Amortization

Effective-Interest Method

Year

Interest

Payable

Interest

Expense

Discount

Amortized

Carrying

Amount of Bonds

Jan. 1, 2020$

Dec. 31, 2020

Dec. 31, 2021

Dec. 31, 2022

Dec. 31, 2023

Dec. 31, 2024