Multiple Choice
McCourt Investment Advisors purchased newly issued bonds on October 1, 2005, paying $108,983. The bonds had a face value of $100,000, maturing on September 30, 2010, and pay interest semiannually on March 31 and September 30. The stated interest rate is 6%. What is the effective interest rate?
A) 4%.
B) 5%.
C) 6%.
D) 7%.
Correct Answer:
Verified
Correct Answer:
Verified
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