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On January 1, 2013, an investor paid $298,000 for bonds with a face amount of $318,000. The contract rate of interest is 8% while the

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On January 1, 2013, an investor paid $298,000 for bonds with a face amount of $318,000. The contract rate of interest is 8% while the current market rate of interest is 11%. Using the effective interest method, how much interest income is recognized by the investor in 2014 (assume annual interest payments and amortization)? (Round your answer to the nearest dollar amount.) 8:06

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