Skysong Company sells 10% bonds having a maturity value of$2,550,000 for $2,366,166. The bonds are dated January 1, 2017, andmature January 1, 2022. Interest is payable annually on January1.
Determine the effective-interest rate. (Round answer to 0decimal places, e.g. 18%.)
Set up a schedule of interest expense and discount amortizationunder the effective-interest method. (Round intermediatecalculations to 6 decimal places, e.g. 1.251247 and final answer to0 decimal places, e.g. 38,548.)
