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On January 1, 2018, an investor paid $297,000 for bonds with a face amount of $317,000. The contract rate of interest is 10% while the

On January 1, 2018, an investor paid $297,000 for bonds with a face amount of $317,000. The contract rate of interest is 10% while the current market rate of interest is 13%. Using the effective interest method, how much interest income is recognized by the investor in 2019 (assume annual interest payments and amortization)?(Round your answer to the nearest dollar amount.)

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  • $39,508.
  • $29,700.
  • $47,648.
  • $38,610.

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