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Determine the effective-interest rate

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Question - Devon Harris Company sells 10% bonds having a maturity value of $2,000,000 for $1,855,816. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1.

Required -

Determine the effective-interest rate.

Set up a schedule of interest expense and discount amortization under the effective-interest method.

Reference no: EM132963045

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