Amortization of Bond Premium by Interest Method 8. Facts: Bond issue: $104,000, 11%, 25-year bonds; selling price of bonds $249,600; market rate 3%. Use the interest method. Calculate the following: a. Carrying value at beginning of period b. Interest paid to bondholders each 6 months c. Interest expense for the first semiannual period d. Premium to be amortized for the first semiannual period e. Carrying value at end of first semiannual period Journalizing the Semiannual Payment and Amortization of Bond Premium 9. From Concept Check 8, record the journal entry for the first semiannual interest payment on October 1