Novak Company sells 8% bonds having a maturity value of $3,170,000 for $2,929,660. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1.
Determine the effectiveinterest rate. (Round answer to 0 decimal places, e.g. 18%.)
The effectiveinterest rate  % 
Set up a schedule of interest expense and discount amortization under the effectiveinterest method. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 38,548.)
Schedule of Discount Amortization 


Interest 
Interest 
Discount 
Carrying 

Jan. 1, 2020  $  $  $  $  
Dec. 31, 2020  
Dec. 31, 2021  
Dec. 31, 2022  
Dec. 31, 2023  
Dec. 31, 2024 
Effective rate is calculated in excel by using formula = Rate(nper,pmt,pv,fv,0)
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