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Mesa Water Containers issued callable bonds on January 1, 2021. The bonds pay interest annually on December 31 each year. Mesa Water has accountants that
Mesa Water Containers issued callable bonds on January 1, 2021. The bonds pay interest annually on December 31 each year. Mesa Water has accountants that have provided the following amortization schedule from issuance until maturity: Interest Expense Decrease in Carrying Value Cash Paid Date 01/01/2021 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 $7,910 7,910 7,910 7,910 7,910 $7,066 7,015 6,961 6,904 6,844 $ 844 895 949 1,006 1,066 Carrying Value $117,760 116,916 116,021 115,072 114,066 113,000 What is the annual stated interest rate on the bonds for Mesa Water Containers? Multiple Choice 3.5% o 7% 3%. o 6%. O
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