The company is paying for the borrowed money

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Reference no: EM131044312

A company sold a $920,000 issue of bonds with a 13-year life, paying 3% interest per year. The bonds were sold at par value. If the company paid a selling fee of $50,000 and has an annual expense of $69,904 for mailing and record keeping, what is the true rate of interest that the company is paying for the borrowed money?

Reference no: EM131044312

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