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What is the contractual rate of interest for this bond issue

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Question - On June 30, 2021, Monty Inc. sold $1,222,000 (face value) of bonds. The bonds are dated June 30, 2021, pay interest semi-annually on December 31 and June 30, and will mature on June 30, 2024. The following schedule was prepared by the accountant for 2021:

Semi-annual Interest Period

Interest to be Paid

Interest Expense

Amortization

Unamortized Amount

Bond Amortized Cost

 

 

 

 

$63,544

$1,158,456

Dec. 31, 2021

$45,214

$52,362

$7,148

56,396

1,165,604

Required - What is the contractual rate of interest for this bond issue?

 

Reference no: EM133002759

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