William Brown Company sells 8% bonds having a maturity value of $1,550,000 for $1,432,484.00. The bonds are dated January 1, 2025, and mature January 1, 2030. Interest is payable annually on January 1. Click here to view factor tables. (a) Determine the effective-interest rate. (Round present value factor to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 18%.) The effective-interest rate %
William Brown Company sells 8% bonds having a maturity value of $1,550,000 for $1,432,484.00. The bonds are dated January 1, 2025, and mature January 1, 2030. Interest is payable annually on January 1. Click here to view factor tables. (a) Determine the effective-interest rate. (Round present value factor to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 18%.) The effective-interest rate %
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 13Q: A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market...
Related questions
Question
![William Brown Company sells 8% bonds having a maturity value of $1,550,000 for $1,432,484.00. The bonds are dated January 1,
2025, and mature January 1, 2030. Interest is payable annually on January 1.
Click here to view factor tables.
(a)
Determine the effective-interest rate. (Round present value factor to 5 decimal places, e.g. 1.25124 and final answer to O decimal
places, e.g. 18%.)
The effective-interest rate
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4d2b5711-8ea6-4c15-a3d5-05f2fdc6d5c1%2F26169c8c-aed4-41dc-ba2a-0d0897de5562%2F4i75ore_processed.png&w=3840&q=75)
Transcribed Image Text:William Brown Company sells 8% bonds having a maturity value of $1,550,000 for $1,432,484.00. The bonds are dated January 1,
2025, and mature January 1, 2030. Interest is payable annually on January 1.
Click here to view factor tables.
(a)
Determine the effective-interest rate. (Round present value factor to 5 decimal places, e.g. 1.25124 and final answer to O decimal
places, e.g. 18%.)
The effective-interest rate
%
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