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Sandberg Manufacturing issued on January 1, 2011, $175,000 of 5%, 10 year bonds to raise funds to buy some special equipment. The bonds were sold
Sandberg Manufacturing issued on January 1, 2011, $175,000 of 5%, 10 year bonds to raise funds to buy some special equipment. The bonds were sold to yield 4% return compounded semi-annually. The company uses the straight line method to amortize discounts and premiums. SHOW ALL WORK What is the annual contract rate?
Group of answer choices
A. 2.5%
B. 5%
C. 2.0%
D. 4.0%
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