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On January 1, year one issues a $100,000 bond with a stated annual interest rate of 8 percent for 95 to produce an effective rate

On January 1, year one issues a $100,000 bond with a stated annual interest rate of 8 percent for 95 to produce an effective rate of 9 percent per year. Interest payments are made every December 31. If the effective rate method is applied, what amount should be recorded for the obligation payable on a balance sheet at the end of the second year

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