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Cheryl Inc Issued $100,000,8%,5-Year Bonds

Question 91

Multiple Choice

Cheryl Inc issued $100,000,8%,5-year bonds.The current market rate was 7.5%.Cheryl received $101,136.80 for the bonds.Using the effective interest method of amortizing bond premium or discount,the amount of interest expense for the first semiannual payment was:


A) $3,500.00.
B) $3,136.32.
C) $3,386,32.
D) $3,792.63.
E) $4,250.00.

Correct Answer:

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