On January 1, a company issued 3%, 20-year bonds with a face amount of $80 million for

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On January 1, a company issued 3%, 20-year bonds with a face amount of $80 million for $69,033,776 to yield 4%. Interest is paid semiannually. What was the interest expense at the effective interest rate on the December 31 annual income statement?

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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 05, 2013 06:50 AM

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On January 1, a company issued 3%, 20-year bonds with a face amount of $80 million for

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