Question
3 BE14-14. Bond Issue, Effective Interest Rate Method, Amortization Table. On January 1, 2018, Stark Incorpo- rated issued $1,500,000 par value, 5%, 7-year bonds
3 BE14-14. Bond Issue, Effective Interest Rate Method, Amortization Table. On January 1, 2018, Stark Incorpo- rated issued $1,500,000 par value, 5%, 7-year bonds (i.e., there were 1,500 of $1,000 par value bonds in the issue). Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1. Determine the issue price of the bonds based on an 8% market rate of interest. Prepare the amortization table for the first 2 years assuming that Stark uses the effective interest
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