$$400,0004\%$ bonds are issued at $97\mathrm{.}67708575$ for $$390,708\mathrm{.}34$ when the market rate for similar bonds is

$5\%.$ Regular interest payments are June $30$th and December $31$st each year. Complete the amortization schedule.

A B

Interest Interest Amortization Balance Carrying

Payment Expense Difference A and

B Discount Value

Face x Face Interest x Time CV x Market Interest x Time

$400,000$ x $\mathrm{.}04$ x $6/12$ CV x $\mathrm{.}05$ x $6/12$

$9,291\mathrm{.}66390,708\mathrm{.}34$

June $30,$

$20$x$18,000\mathrm{.}009,767\mathrm{.}711,767\mathrm{.}717,523\mathrm{.}95$

$+1,767\mathrm{.}71$

$392,476\mathrm{.}05$

Dec. $31,$

$20$x$18,000\mathrm{.}009,811\mathrm{.}901,811\mathrm{.}905,712\mathrm{.}05$

$+1,811\mathrm{.}90$

$394,287\mathrm{.}95$

June $30,$

$20$x$2$

Dec. $31,$

$20$x$2$

June $30,$

$20$x$3$

$49,291\mathrm{.}66$