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 RE-ACQUISITION PRICE at the date of call. Calculate the CARRYING VALUE at the date of call. Calculate the GAIN or LOSS at the date of call. 1. If it is a GAIN simply input the amount such as 100. 2. If it is a LOSS input the amount with a minus sign such as -100