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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 $60 million of 5% three-year bonds, with coupon paid at the end of every
year. The effective interest rate at the beginning of Years 1,2, and 3 was 8%,5%, and 2%.
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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