On December 31, 2011, Beauty Box Company borrowed $3,000,000 by issuing three-year, zero coupon bonds. The face

Question:

On December 31, 2011, Beauty Box Company borrowed $3,000,000 by issuing three-year, zero bonds. The of the bonds is $3,240,000. Beauty Box uses the straight-line method to amortize any premium or discount.

Required:
Prepare an amortization table for these bonds using the following column headings:

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...