3. On January 1, 2020 Arawak Inc. issued $2,000,000 of 10-year, 9% bonds for $1,877,103. The...

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3. On January 1, 2020 Arawak Inc. issued $2,000,000 of 10-year, 9% bonds for $1,877,103. The bonds were isued when the market rate of interest was 10%. Interest is payable annually on December 31 each year. Arawak uses the effective-interest method of amortization. At the end of the first year, Arawak would repcrt an unamortized bond discount of: a. $115,187. b. $102,897. c. $104,126. d. $91,836. 3. On January 1, 2020 Arawak Inc. issued $2,000,000 of 10-year, 9% bonds for $1,877,103. The bonds were isued when the market rate of interest was 10%. Interest is payable annually on December 31 each year. Arawak uses the effective-interest method of amortization. At the end of the first year, Arawak would repcrt an unamortized bond discount of: a. $115,187. b. $102,897. c. $104,126. d. $91,836.

Answer rating: 100% (QA)

DISCOUNT 2000000 1877103 122897 ANNUALLY PAYAM... View the full answer