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FULL SCREEN PRINTER VERSION OK Exercise 14-6 Spencer Company sells 10% bonds having a maturity value of £3,000,000 for £2,783
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Hi Firstly We need to Calculate the Effective rate of Return from the Data given in the Question

For that purpose we need to follow the below mentioned steps:

Step -01 Computation of Annual Cash Flow Face Value of Bond (A) Bond Interest Rate (B) Cash Paid Annually (AXB) 3000000 10% 3

Once we have Calculated the Effective rate of Return then we will calculate the Questions Missing Fields

Year (A) Cash Paid (Face value of Bond X Interest Rate) Schedule of Discount Amortisation Effective Interest Method (D) (B) U

*All the Value figure mentioned is in Euro (€)

** Rounded

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