What is amortization of discount-effective interest method

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On the first dy of its fiscal year, Pedro Dynamite Co. issued $11,000,000 of the five-year, 9% bonds, semiannually. The bonds were issued at an effective rate of 12%, and received proceeds cash of $9,785,645.

What is the amortization of discount at the end of the first year and second year, using the effective interest method?

Reference no: EM13777621

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Compute the amount of the bond interest expense : On the first day of its fiscal year, Pedro Dynamite Co. issued $11,000,000 of the five-year, 9% bonds, semiannually. The bonds were issued at an effective rate of 12%, and received proceeds cash of $9,785,645. Compute the amount of the bond interest ..
Prepare an amortization table for the five years : On the first dy of its fiscal year, Pedro Dynamite Co. issued $11,000,000 of the five-year, 9% bonds, semiannually. The bonds were issued at an effective rate of 12%, and received proceeds cash of $9,785,645. Prepare an amortization table for the fiv..
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