2. Issue Price of Bonds. Determine the issue price of the following bonds. a. $3,000,000 face value issued at 103. ____________________ b. $200,000 face value issued at 98. ____________________ c. $400,000 face value, four-year term, stated rate of 6%, interest paid annually issued at a market rate of 4%. PV of Principal Payment + PV of Interest Payments d. $400,000 face value, four-year term, stated rate of 6%, interest paid annually issued at a market rate of 8%. 3. Bond Concepts. Answer the following. a. Bonds with a stated rate lower than the market rate will be issued at a _________________. b. Bonds with a stated rate higher than the market rate will be issued at a _________________.

6. Bond Amortization Schedule (Premium). Bonds with a face amount of $200,000 were issued on January 1, 2010. The bonds have a contract rate of 8% and a term of five years. The bonds were issued for $216,849 with an effective rate of 6%. Complete the amortization schedule using the effective interest method

2. Issue Price of Bonds. Determine the issue price of the following bonds. a. $3,000,000 face value issued at 103. ____________________ b. $200,000 face value issued at 98. ____________________ c. $400,000 face value, four-year term, stated rate of 6%, interest paid annually issued at a market rate of 4%. PV of Principal Payment + PV of Interest Payments d. $400,000 face value, four-year term, stated rate of 6%, interest paid annually issued at a market rate of 8%. 3. Bond Concepts. Answer the following. a. Bonds with a stated rate lower than the market rate will be issued at a _________________. b. Bonds with a stated rate higher than the market rate will be issued at a _________________. 6. Bond Amortization Schedule (Premium). Bonds with a face amount of $200,000 were issued on January 1, 2010. The bonds have a contract rate of 8% and a term of five years. The bonds were issued for $216,849 with an effective rate of 6%. Complete the amortization schedule using the effective interest method