Home / Questions / On January 1 2012 a bond has a carrying value of $89280 and a face value of $100000 The ma...
On January 1, 2012, a bond has a carrying value of $89,280 and a face value of $100,000. The market rate of interest is 9% and the stated rate of interest on the bond is 10%. Interest is paid on December 31 of each year. Required Calculate interest paid and interest expense for 2012 under the effective interest method.
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