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General Investment Co. (GIC) purchased bonds on January 1, 2021. GIC's accountant has projected the...

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Accounting

General Investment Co. (GIC) purchased bonds on January 1, 2021. GIC's accountant has projected the following amortization schedule from purchase until maturity:

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What is the annual market interest rate on the bonds?

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General Investment Co. (GIC) purchased bonds on January 1, 2021. GIC's accountant has projected the following amortization schedule from purchase until maturity: Interest Revenue Amortization of Discount Date Cash Received 1/1/2021 6/30/2021 $ 4,800 12/31/2021 4,800 6/30/2022 4,800 12/31/2022 4,800 6/30/2023 4,800 12/31/2023 4,800 $5,451 5,474 5,497 5,522 5,547 5,572 $651 674 697 722 747 772 Amortized Cost $ 155,737 156,388 157,062 157,759 158, 481 159, 228 160,000 What is the annual market interest rate on the bonds? Multiple Choice 6.0% 3.0% O 3.5% 7.0%

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