Discount-Mart issued ten thousand $1,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Payment Cash Effective Interest Decrease in Balance Outstanding Balance 8,640,967 1 300,000 345,639 45,639 8,686,606 2 300,000 347,464 47,464 8,734,070 3 300,000 349,363 49,363 8,783,433 4 300,000 What is the stated annual rate of interest on the bonds? 8%. 4%. 3%. 6%.

The correct answer is 8% annual rate of interest on the bonds.

Explanation:

The effective annual interest rate is 8%

Effective rate if interest (semi-annual) = (Effective interest / Outstanding Balance) x 100

Effective rate if interest (semi-annual) = (345,639 / 8,640,967) x 100

Effective rate if interest (semi-annual) = 0.04 x 100

Effective rate if interest (semi-annual) = 4%

The Effective Annual Rate of Interest = 4% x 2 = 8%

750 h and costs $0.60 per bulb.

it established new limitations on use and disclosure for marketing purposes, prohibited selling medical information, expanded individuals’ rights to accessing their own information, and to obtain restrictions from certain disclosures of protected heath information to health plans.