On january 1 2016 an investor paid 298000 for bonds with a, Ask an Expert

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On January 1, 2016, an investor paid $298,000 for bonds with a face amount of $318,000. The contract rate of interest is 8% while the current market rate of interest is 11%. Using the effective interest method, how much interest income is recognized by the investor in 2017 (assume annual interest payments and amortization)? (Round your answer to the nearest dollar amount.)

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M92043955

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