On January 2,Solar Corporation issues $500,000 face value,6% bonds for $495,000.It may be derived that the effective rate of interest was:

Name: On January 2,Solar Corporation issues $500,000 face value,6% bonds for $495,000.It may be derived that the effective rate of interest was:
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The effective rate of interest was more than 6% because the bonds were issued at a discount (sold for less than their face value), indicating that the market demanded a higher yield than the stated interest rate of 6%.

On January 2,Solar Corporation Issues $500,000 Face Value,6% Bonds for $495,000.It