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Pearson Co issue its $ 1 9 5 , 0 0 0 at a price of 1 0 5 , the stated rate is 8

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Pearson Co issue its $195,000 at a price of 105, the stated rate is 8%, the bond term is 4 years, and the market rate is 5%. Assume the term of the bonds is 4 years.
Using the effective interest method, the interest expense in the 1st year will be $
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