Calculate the effective interest rate

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Question - Company A issued a 5 year, $100,000, 5% bond on Jan. 1, 2010. Interest is payable each December 31. The bond sold for $102. The issue costs were $700. The issue costs are merged with any discount or premium... to calculate a single effective interest rate. 30% of the bonds are retired on April 1, 2013 at 101.

Calculate the effective interest rate. Make all needed entries on 12/31/2012. Make all entries needed to retire the bonds (including interest payment on April 1, 2013. Make the interest entry on Dec. 31, 2013.

Reference no: EM132929795

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