Question: Please answer correctly. And show step by step solution. Thank you! On 1 January 208, a borrower arranged a $1,000,000 three-year 2% bond payable, with

Please answer correctly. And show step by step solution.

Thank you! Please answer correctly. And show step by step solution. Thank you! On

On 1 January 208, a borrower arranged a $1,000,000 three-year 2% bond payable, with interest paid annually each 31 December. There was an upfront fee of $106,920, which was deducted from the cash proceeds of the loan on 1 January 208. (PV of $1, PVA of \$1. and PVAD of \$1.) (Use appropriate factor(s) from the tables provided. Calculate using effective interest method.) Required: 1-a. Calculate the effective interest rate associated with the loan. (Round your answer to the nearest whole percentage.) Answer is complete but not entirely correct. 1-b. What net amount is received on 1 January 208 ? Answer is complete and correct. 2. Calculate the interest expense reported by the borrower for each year. (R1 percentage and your final answers to the nearest whole dollar amount.) Answer is complete but not entirely correct

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