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On May 5,2017,Bennix Sold $1,000,000 of Five-Year,3% Bonds for $900,500

Question 98

Multiple Choice

On May 5,2017,Bennix sold $1,000,000 of five-year,3% bonds for $900,500. From the proceeds,the company paid fees of 100,000.Interest is payable semi-annually on May 5 and November 5.What is the effective rate of interest (round to 2 decimal places) ?


A) 3.00%
B) 3.72 %
C) 3.95%
D) 6.27%

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