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B (Chapters 8, 9&10) Stein Corporation issued a $2.300 bond on January 1, year 1. The bond specified an interest rate of 6 percent
B (Chapters 8, 9&10) Stein Corporation issued a $2.300 bond on January 1, year 1. The bond specified an interest rate of 6 percent payable at the end of each year. The bond matures at the end of year 3. It was sold at a market rate of 8 percent per year. The following schedule was completed: Use Table 9C1, Table 9C.2 January 1, year 1 (issuance) December 31, year 1 December 31, year 2 December 31, year 3 Cash Paid Interest Expense Amortization Carrying Amount $2,181 ? $7 $ 36 ? 39 42 Required: 1. What was the bond's issue price? (Round "PV factor" to 4 decimal places. Round the final answer to the nearest whole dollar.) Issue price 2-a. Did the bond sell at a discount or a premium? O Discount O Premium 2-b. How much was the premium or discount?
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