Essay
On January 1,20x5,Ed Bradley Co.issued five-year term bonds with a face value of $700,000.Interest is payable annually on December 31.The bonds were issued for $727,300.The effective interest method of amortization is used.Ed Bradley reported Bond Interest Expense of $65,457 on its income statement for the year ended December 31,20x5.Calculate the effective interest rate for these bonds.
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