Coronado Company sells 8% bonds having a maturity value of $2,180,000 for $2,014,720. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1. (a) Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18%.) The effective-interest rate %

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Coronado Company sells 8% bonds having a maturity value of $2,180,000 for $2,014,720. The bonds are dated January 1, 2020, and
mature January 1, 2025. Interest is payable annually on January 1.
(a)
Determine the effective-interest rate. (Round answer to O decimal places, e.g. 18%.)
The effective-interest rate
%
Transcribed Image Text:Coronado Company sells 8% bonds having a maturity value of $2,180,000 for $2,014,720. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1. (a) Determine the effective-interest rate. (Round answer to O decimal places, e.g. 18%.) The effective-interest rate %
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