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2. On January 1, 2018, GamePro, issued a $1,000,000 face value, 5- year bonds with a stated coupon rate of 5% at an effective rate
2. On January 1, 2018, GamePro, issued a $1,000,000 face value, 5- year bonds with a stated coupon rate of 5% at an effective rate of 4% which sold for $1,044,913. Interest is paid semi-annually on July 1 and December 31. GamePro uses the effective-interest method of amortization. Prepare the amortization table for the life of the bond. (Hint: the initial purchase and 1st period interest payment has been provided) Semi Annual Coupon Interest Payment Expense Amount Date Jan-01 2018 Jul-01 2018 $25,000 $20,898 Premium Amort Carrying Amount 1,044,913 $4,102 1,040,811
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