Effective interest method of amortization


Question:

On January 1, Year 1, a firm issued $200,000 bonds and received $210,483 from investors. The stated rate of interest is 10% and the market rate of interest is 8%. The bonds have a 3-year maturity and pay interest semi-annually on June 30 and December 31st. Prepare an amortization schedule using the effective interest method of amortization. (Round to the nearest dollar and disregard any minor rounding differences.)

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Finance Basics: Effective interest method of amortization
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