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What is the appropriate discount rate

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Question - On March 1, 2018, Brown Corporation issued 8% bonds dated February 1, 2018, the face amount of $500,000. The bonds were sold for the present value of the bonds on March 1, 2018 plus one-month accrued interest. The bonds mature on January 31, 2023. Interest is paid semiannually on July 31 and January 31. Brown's fiscal year ends on December 31 each year. The effective interest rate is 10%. What is the appropriate discount rate used to derive the present value of the bonds on March 1, 2018?

Reference no: EM132651218

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