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Business, 12.02.2020 02:54 gracemerci1

Devon Harris Company sells 9% bonds having a maturity value of $2,984,000 for $2,661,311. The bonds are dated January 1, 2014, and mature January 1, 2019. Interest is payable annually on January 1.

a. Determine the effective-interest rate.

b. Set up a schedule of interest expense and discount amortization under the effective-interest method.

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