On January 1, 2009, Woodvale Corporation issued five-year term bonds with a face value of $700,000. Interest is payable annually on December 31. The bonds were issued for $727,300. The effective interest method of amortization is used. Ryan reported Bond Interest Expense of $65,457 on its income statement for the year ended December 31, 2009. Calculate the effective interest rate for these bonds.

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The Answer of On January 1, 2009, Woodvale Corporation issued five-year term bonds with a face value of $700,000. Interest is payable annually on December 31. The bonds were issued for $727,300. The effective interest method of amortization is used. Ryan reported Bond Interest Expense of $65,457 on its income statement for the year ended December 31, 2009. Calculate the effective interest rate for these bonds.

On January 1, 2009, Woodvale Corporation Issued Five-Year Term Bonds