Canaroo Inc.sold $800,000 of two-year bonds for $701,500 less commissions of $50,500.Interest is of 5.5% is payable annually.What is the effective rate of interest (round to 2 decimal places) ?
A) 5.50 %
B) 8.43%
C) 8.65%
D) 17.29%
Correct Answer:
Verified
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