Gary King Company sells 8% bonds having a maturity value of $3,440,000 for $3,179,190.00. The bonds...

 

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Gary King Company sells 8% bonds having a maturity value of $3,440,000 for $3,179,190.00. The bonds are dated January 1, 2025, and mature January 1, 2030. Interest is payable annually on January 1. Click here to view factor tables. (a) Determine the effective-interest rate. (Round present value factor to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 18%.) The effective-interest rate % Gary King Company sells 8% bonds having a maturity value of $3,440,000 for $3,179,190.00. The bonds are dated January 1, 2025, and mature January 1, 2030. Interest is payable annually on January 1. Click here to view factor tables. (a) Determine the effective-interest rate. (Round present value factor to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 18%.) The effective-interest rate %

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To determine the effectiveinterest rate we can use the present value f... View the full answer