Old School Vacations issued $100,000, 10%, 10-year bonds on January 1, 2010, when the market rate of

Question:

Old School Vacations issued $100,000, 10%, 10-year bonds on January 1, 2010, when the market rate of interest was 8%. Proceeds were $113,420.16. Interest is payable annually on January 1. Old School uses the effective interest method to amortize bond premiums and discounts. Prepare an amortization schedule for the life of the bonds.