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Lane Corporation issued $1,000,000 of 12% bonds on January 1, 2020, due on January 1, 2022. The interest is to be paid annually on December
Lane Corporation issued $1,000,000 of 12% bonds on January 1, 2020, due on January 1, 2022. The interest is to be paid annually on December 31. The bonds were sold to yield 7% effective annual interest. The Corporation closes its books annually on December 31.
What is the discount rate?
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12%
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7%
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6%
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3.5%
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