South Fork Farms, Inc., reported $5,000,000 of 6% bonds payable. Interest is payable semi-annually. The bonds...
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South Fork Farms, Inc., reported $5,000,000 of 6% bonds payable. Interest is payable semi-annually. The bonds were issued at par. As of December 31, 2024, the current balance of the unamortized discount on the bonds was $600,000 with 10 years to maturity. The company decided to retire all bonds on December 31, 2024. The price paid to retire the bonds was $4,000,000. Determine the annual market rate of interest on the date the bonds were retired (Round to two decimal places). A B C D 18.27% 9.14% 4.54% 9.09% South Fork Farms, Inc., reported $5,000,000 of 6% bonds payable. Interest is payable semi-annually. The bonds were issued at par. As of December 31, 2024, the current balance of the unamortized discount on the bonds was $600,000 with 10 years to maturity. The company decided to retire all bonds on December 31, 2024. The price paid to retire the bonds was $4,000,000. Determine the annual market rate of interest on the date the bonds were retired (Round to two decimal places). A B C D 18.27% 9.14% 4.54% 9.09%
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Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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