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Bonita Company sells 8% bonds having a maturity value of $2 , 290 , 000 for $2 , 116 , 380 . The bonds are
Bonita Company sells 8% bonds having a maturity value of $2 , 290 , 000 for $2 , 116 , 380 . The bonds are dated January 1,2020 , and mature January 1,2025 . Interest is payable annually on January 1. (a) Your answer is correct. Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18\%.) The effective-interest rate % Set up a schedule of Interest expense and discount amortization under the effective-interest method, (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 38.548.)
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