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Problem - Computation of Effective Interest Rate

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Problem - Computation of Effective Interest Rate - On June 30, 2019, Gaston Corporation sold $800,000 of 11% face value bonds for $761,150.96. On December 31, 2019, Gaston sold $700,000 of this same bond issue for $734,645.28. The bonds were dated January 1, 2019, pay interest semiannually on each December 31 and June 30, and are due December 31, 2026. Compute the effective yield rate on each issuance of Gaston's 11% bonds.

Reference no: EM132888929

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