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Question 9 (3.75 points) On January 2, 2020, Caramilk Ltd. sold five-year, 4% bonds with a face value of $500,000. Interest is to be paid
Question 9 (3.75 points) On January 2, 2020, Caramilk Ltd. sold five-year, 4% bonds with a face value of $500,000. Interest is to be paid semi-annually on June 30 and December 31. The bonds were sold for $478,121 to yield a market rate of 5%. Using the effective- interest method, total interest expense for 2020 is: $11,953 $24,205 $23,955 $23,906
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