Assume that on January 1 Comcast issues $300,000 of 15-year, 10% bonds payable for $351,876, yielding, and effective semiannual interest rate of 4%. Interest is payable semiannually on June 30^th and December 31.

Assume that at the end of year 5, Comcast repurchases the bonds on the open market. The effective semiannual interest rate has fallen to 2%. What will Comcast pay to repurchase these bonds? Determine any gain or loss on the purchase transaction using the Compound Interest Tables values for Present Value Factor to arrive at Present Value.

End of Year 5 information:

Period	Bond NBV Start of period	Interest paid	Interest expense	Amortization of Bond premium	Bond premium	Bond NBV End of period
10	$ 342,087	$ 15,000	$ 13,684	$ 1,317	$ 40,771	$ 340,771

Hint: As a guide you may choose to use the following table.

	Payment	Present Value Factor	Present Value
Interest
Principle
			$