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What is the effective interest rate of the bond

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Question - On July 1, 2021, Expresso Industries issued $700,000 of 12% bonds, dated July 1. Interest is payable semi-annually on July 1 and Dec 31. The bonds mature in three years. The market yield for bonds of similar risk and maturity is 14%. The proceeds to the bond issuer was $666,633. Bond issue costs were $18,000: What is the effective interest rate of the bond.

Reference no: EM133179545

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