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The following amortization and interest schedule reflects the issuance of 11-year bonds by Capulet Corporation on January 1, 2008, and the subsequent interest payments and

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The following amortization and interest schedule reflects the issuance of 11-year bonds by Capulet Corporation on January 1, 2008, and the subsequent interest payments and charges. The company's year-end is December 31, and financial statements are prepared once yearly Amortization Schedule Amount Carrying Year Cash Interest Unamortized Value 1/1/2008 $18,667 138,533 2008 $15,720 $16,624 17,763 139,437 2009 15,720 16,732 140,449 16,854 2010 15,720 15,617 141,583 14,347 142,853 2011 15,720 16,990 2012 15,720 12,925 17,142 144,275 2013 15,720 17,313 11,332 145,868 2014 15,720 17,504 147,652 9,548 2015 15,720 17,718 7,550 149,650 2016 15,720 17,958 5,312 151,888 157,200 2017 15,720 21,032 (a) Indicate whether the bonds were issued at a premium or a discount. Discount b) Indicate whether the amortization schedule is based on the straight-line method or the effective-interest ethod. Effective interest method m (c) Determine the stated interest rate and the effective-interest rate. (Round answers to o decimal places, e.g. 38,548) The stated rate The effective rate

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