4. Which method should the company use to amortize the bond discount or premium? As a financial analyst, would you prefer one method over the other? Straight-line method Effective interest amortization Deferred-interest method 3. Assume instead that the company used the effective interest method to amortize the discount or premium. Prepare an effective- interest bond amortization schedule. (Make sure that the unamortized discount/premium equals to 'O' and the Net Liability equals to face value of the bond in the last period. Round the final answers to the nearest whole dollar.) Date 1/1/year 1 12/31/year 1 12/31 year 2 12/31 year 3 12/31 year 4 12/31/year 5 Bond Payment Schedule Cash Interest Amortization of Payment Expense Discount Net Liability $ 784.029 $ 60,000 $ 62.722 $ 2,722 786,751 60,000 62.940 2,9401 789,692 60.000 63.175 3,1751 792.867 60,000 63,429 3,429 796.296 60,000 63.704 3.704 800,000 2. Assume that the company used the straight-line method to amortize the discount or premium on the bond issue. Compute the following amounts for each year (years 1 to 5) (Make sure that the unamortized discount/premium equals to 'O and the Net Liability equals to face value of the bond in the last period. Round Intermediate and final answers to the nearest whole dollar. Round percentage answers to 2 decimal places. L.e., 0.1234 to be entered as 1.23. Input all amounts as positive values.) Cash payment for bond interest Amortization of bond discount or premium e Bond Interest expense Carrying amount of the bond e. Interest exponse as a percentage of the carrying amount at the beginning of the year Year 1 $ 60,000 2,722 62.722 786,751 8.00% Year 2 $ 60,000 2.940 62,940 789.691 8.00 Year $ 60.000 3,175 63,175 792,006 8.00% Year 4 $ 60,000 3,420 63.429 796.296 Years $ 60,000 3.704 63,704 300.000 8.00% 8.00