O n   May 11, 1993,  a   n o t e   d u e  on January 10, 1994  w a s   d i s c o u n t e d   at 12.12%  s i m p l e   d i s c o u n t .    F i n d   t h e   e x a c t   s i m p l e   i n t e r e s t   r a t e  of 10.75%  f o r   one year and 3 months?  W h a t   i s   t h e   e x a c t   d i s c o u n t   r a t e ?   Given: Required: Solution:

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 12E: On October 1, 2019, Ball Company issued 9% bonds dated October 1, 2019, with a face amount of...
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O n   May 11, 1993,  a   n o t e   d u e  on January 10, 1994  w a s   d i s c o u n t e d   at 12.12%  s i m p l e   d i s c o u n t .

 

 F i n d   t h e   e x a c t   s i m p l e   i n t e r e s t   r a t e  of 10.75%  f o r   one year and 3 months?  W h a t   i s   t h e   e x a c t   d i s c o u n t   r a t e ?

 


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