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problem: Stacy Company issued 5 year, 10 percent bonds with a face value of $10,000 on January 1, 2007. Interest is paid yearly on December 31. The market rate of interest on this date is 8%, & Stacy Company receives proceeds of 10,803 dollar on the bond issuance.

Make a 5 year table to amortize the premium using the effective interest method.

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