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The Annual Interest Expense on a $50,000,15-Year,10 Percent Bond Issued

Question 85

Multiple Choice

The annual interest expense on a $50,000,15-year,10 percent bond issued for $45,650 plus accrued interest 6 months after authorization,assuming straight-line amortization,would be


A) $5,300
B) $5,025
C) $5,000
D) $4,975

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