Bond Issue Scenario 2: years to maturity = 5 5 No. coupons due = 10 10 On 1/1/2020 Big Sky Inc., issued $80,000,000, 2%, due 12/31/2022. The coupon payments (i.e., 1% semi-annual.) are paid on June 30th & Dec 31st. At the time of issue, the stated market rate for similar bond issues was 10%, (i.e., 5% semi-annual.) a) Calculate the issue price (present value) of the bond proceeds. (round to nearest dollar). (Show and label your work). 80,000,000 1% $800,000 Semi annual 1% PV of Cash Interest b) Complete the bond amortization table below. (use EXCEL & round to the nearest dollar) There will be a rounding error. c) Prepare the accounting journal entries for the bond issue on the Journal Entry Sheet. Unamortized Cash Payment Interest Expense Bond Carrying Value Date Amortization 01/01/20 $0 $0 $0 $0 06/30/20 $800,000 12/31/20 $800,000 06/30/21 $800,000 12/31/21 $800,000 06/30/22 $800,000 12/31/22 $800,000