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On 1 January 20X8, a borrower arranged a $1,010,000 three-year 3% bond payable, with interest...

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Accounting

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image On 1 January 20X8, a borrower arranged a $1,010,000 three-year 3% bond payable, with interest paid annually each 31 December. There was an upfront fee of $80,992, which was deducted from the cash proceeds of the loan on 1 January 20X8. (PV of $1. PVA of $1. end PVAD of $1.) (Use approprlate factor(s) from the tables provlded. Coleulate using effectlve Interest method.) Required: -a. Calculate the effective interest rate associated with the loan. (Round your answer to the nearest whole percentage.) 1-b. What net amount is received on 1 January 208 ? 2 Calculate the interest expense reported by the borrower for each year. (Round your effectlve Interest rote to the nearest whole percentege and your flnal answers to the nearest whole dollar amount.)

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