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KC Corporation issued bonds with a total par value of $100,000 on 1/1/20x1. The following loan amortization schedule was developed for these bonds:. Year

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KC Corporation issued bonds with a total par value of $100,000 on 1/1/20x1. The following loan amortization schedule was developed for these bonds:. Year Beginning Carrying Value Interest Cash Amortization 20x1 96,613 6,763 6,000 763 20x2 97,376 6,816 6,000 816 20x3 98,192 6,873 6,000 873 20x4 99,065 6,935 6,000 935 Column Totals 27,387 24,000 3,387 Based upon the above information, What is the effective (market) rate of interest? SHOW CALCULATIONS

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