1 question 3 parts

USE THE FOLLOWING INFORMATION FOR THIS QUIZLET: Total par value = $1,000,000 Stated interest rate = 2% Effective / market rate = 4% Issued on 1/1/X2 Due date 12/31/X6 Years to maturity = 5 years Semi-annual interest Interest accrues from January 1 through June 30 and is paid on July 1 AND Interest accrues from July 1 through December 31 and is paid on January 1 Assume the bond is called on 7/1/X6 Called at 101% Un-amortized bond discount at call date = $9,804 Calculate the CASH payment at each interest payment date. Calculate INTEREST EXPENSE at the SECOND interest payment date. Calculate the AMORTIZATION of the DISCOUNT or PREMIUM at the THIRD interest payment date. 1. If it is a DISCOUNT simply input the amount such as 100. 2. If it is a PREMIUM input the amount with a minus sign such as -100