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Cybernetics Inc. issued $ 6 0 million of 5 % three - year bonds, with coupon paid at the end of every year. The effective
Cybernetics Inc. issued $ million of threeyear bonds, with coupon paid at the end of every
year. The effective interest rate at the beginning of Years and was and
Required:
b Assume Cybernetics decides to account for the bonds using the amortized cost method. Determine the interest
and bond amortization for each of the three years.
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