On November 1, 2020, FastCare Sold $5,000,000 of Three-Year Bonds

question 89

Multiple Choice

On November 1, 2020, FastCare sold $5,000,000 of three-year bonds for $4,750,325. From the proceeds, the company paid accounting fees of 50,000. Interest of 5% is payable annually. What is the effective rate of interest (round to 2 decimal places) ?

• A)7.30%
• B)5.00%
• C)4.69%
• D)3.63%

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Definitions:

Perceptual Competencies

Perceptual Competencies involve the skills related to understanding, interpreting, and responding to information gathered through the senses, crucial for effective interaction with the environment and decision-making.

International Employees

Workers who are employed by an organization in positions that may require them to move between different countries or work across national boundaries.

Home-country Nationals

Employees from an organization's founding country working at its operations in another country, often in managerial or technical positions.

Labour Market

The supply and demand dynamics of workers, where employers seek to hire and workers seek to find employment.