On January 1, 20x5, Ed Bradley Co issued five-year term bonds with a face value of $700,000. Interest is payable annually on December 31. The bonds were issued for $727,300. The effective interest method of amortization is used. Ed Bradley reported Bond Interest Expense of $65,457 on its income statement for the year ended December 31, 20x5. Calculate the effective interest rate for these bonds
9 percent ($65,457 รท $727,300)
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