General Investment Co. (GIC) purchased bonds on January 1, 2021. GIC's accountant has projected the...
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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:
What is the annual market interest rate on the bonds?
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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