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RoarieInc issued $200,000, 7%, 5-year bonds. The current market rate was 7.5%. Roarie received $197,947 for the bonds. Using the effective interest method, the amount
RoarieInc issued $200,000, 7%, 5-year bonds. The current market rate was 7.5%. Roarie received $197,947 for the bonds. Using the effective interest method, the amount of interest expense to be recorded for the first semiannual payment was:
$6,673.01. | ||
$6,500.00. | ||
$6,705.30. | ||
$7,423.01. |
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