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On January 1, 2012, the City of Austin issued $5,000,000 in mature in three years. The bonds have a stated rate of 8 percent and
On January 1, 2012, the City of Austin issued $5,000,000 in mature in three years. The bonds have a stated rate of 8 percent and pay interest on june 30 and December 31 each year. When the bonds were sold, the market rate was 9 percent. The City of Austin uses the effective interest method. What amount of cash interest should be paid on December 31, 20127 . $200,000 $450,000 OC $220.061 OD $400,000
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