Prescott Corporation 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?
A) 3%.
B) 4%.
C) 6%.
D) 8%.
Correct Answer:
Verified
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