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XYZ Corp issued $ 6 0 0 , 0 0 0 of 9 % , 1 0 - year bonds on June 3 0 ,

XYZ Corp issued $600,000 of 9%,10-year bonds on June 30,2020, for $562,500. This price provided a yield of 10% on the bonds. Interest is payable semiannually on December 31 and June 30. If XYZ uses the effective- interest method, what is the amount of interest expense that has accrued if the accounting period ends on October 31,2020. A) $27,000 B) $28,125 C) $18,750 D) $20,000

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