Amortization schedule for bonds. Womack Company issues 10-percent semiannual coupon bonds maturing five years from the date of issue. The coupons, each dated for January 1 and July 1 of each year, promise 5 percent of the face value, 10 percent total for a year. The firm issues the bonds to yield 8 percent, compounded semiannually.

a. What are the initial issue proceeds received by Womack Company?

b. Construct an amortization schedule, similar to that in Exhibit 9.4. for this bond issue.

c. Assume that at the end of the third year of the bond's life, Womack Company reacquires $ 1 0,000 face value of bonds for 1 03 percent of par and retires them. Give the journal entry to record the retirement.