What interest rate must always be used to pay interest


Problem

A. Why are you teaching us to study bonds, when 99.9% of us will never be dealing with bonds because we are not accounting majors? Believe it or not, there is a great reason!

B. What advantage do bonds have over long-term notes?

C. What interest rate must always be used to pay interest?

D. Which interest rate do we use when we go to the tables?

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Financial Accounting: What interest rate must always be used to pay interest
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