On May 5,2017,Bennix sold $1,000,000 of five-year,3% bonds for $900,500.
From the proceeds,the company paid fees of 100,000.Interest is payable semi-annually on May 5 and November 5.What is the effective rate of interest to 2 decimal places?
A)3.00%
B)3.72 %
C)3.95%
D)6.27%

Question

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The Answer of On May 5,2017,Bennix sold $1,000,000 of five-year,3% bonds for $900,500.
From the proceeds,the company paid fees of 100,000.Interest is payable semi-annually on May 5 and November 5.What is the effective rate of interest to 2 decimal places?
A)3.00%
B)3.72 %
C)3.95%
D)6.27%

On May 5,2017,Bennix Sold $1,000,000 of Five-Year,3% Bonds for $900,500