Discount-Mart issued ten thousand $1,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds.
-What is the effective annual rate of interest on the bonds?

Question

Discount-Mart issued ten thousand $1,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds.  
-What is the effective annual rate of interest on the bonds?

Quizplus · Accepted Answer

($345,639 / $8,640,967) × 2 = 8%

Discount-Mart Issued Ten Thousand $1,000 Bonds on January 1, 2018