Life.com issued $10 million of commercial paper on April 1 on a nine-month note. Interest was discounted

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Life.com issued $10 million of commercial paper on April 1 on a nine-month note. Interest was discounted at issuance at a 6% discount rate. What is the effective interest rate on the commercial paper?

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Intermediate Accounting

ISBN: 9781259722660

9th Edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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Question Posted: Jul 02, 2013 06:33 AM

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Life.com issued $10 million of commercial paper on April 1 on a nine-month note. Interest was discounted

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Cash difference 9550000 Discount on notes payable 100000...View the full answer

Intermediate Accounting

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