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15-02-2024
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On January 1, 2023, Mada Co. issued 9%, 10-year bonds with a face amount of $900,000 for $864,000 cash. Interest is payable annually on December 31. The bonds were issued for an effective market interest rate of 8%. What is the effective market interest rate for the bonds?A) 9%B) 8%C) 10%D) None of the above

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