On january 1 2011 an investor paid 306000 for bonds with a, Ask an Expert

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On January 1, 2011, an investor paid $306,000 for bonds with a face amount of $360,000. The stated rate of interest is 11% while the current market rate of interest is 13%. Using the effective interest method, how much interest income is recognized by the investor in 2011 (assume annual interest payments and amortization)?

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Accounting Basics, Accounting

Category:- Accounting Basics
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