Pearson Co issue its $92,700 at a price of 103, the stated rate
is 9%, the bond term is 4 years, and the market rate is 5%. Assume the term of the bonds is 4 years.
Using the effective interest method, the interest expense in the 1st year will be $_____
Using the straight line method of amortization, the interest expense in the 1st year will be $_____
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The post Pearson Co issue its $92,700 at a price of 103, the stated rate is 9%, the bond term is 4 years, and the market rate is 5%. Assume the term of the bonds is 4 years. Using the effective interest method, the interest expense in the 1st year will be $_____ Using the straight line method of amortization, the interest expense in the 1st year will be $_____ appeared first on Superb Professors.
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