Refer to E14-18 and Auburn Limited.

Instructions
Repeat the instructions of E14-18 assuming that Auburn Limited follows IFRS and uses the effective interest method. Provide an effective-interest table for the bonds from the inception of the bond to the date of the redemption. Using a financial calculator and computer spreadsheet functions, you need to first calculate the effective interest rate on the 2010 and 2017 bonds. Round the semi-annual interest percentage to three decimal places.

Data From E14-18:

On June 30, 2010, Auburn Limited issued 12% bonds with a par value of $800,000 due in 20 years. They were issued at 98 and were callable at 104 at any date after June 30, 2017. Because of lower interest rates and a significant change in the company's credit rating, it was decided to call the entire issue on June 30, 2017 and to issue new bonds. New 10% bonds were sold in the amount of $1 million at 102; they mature in 20 years. The company follows ASPE and uses straight-line amortization. The interest payment dates are December 31 and June 30 of each year.