Bonds and Leases Homework eBook Calculator Present Value of $1 PV of Annuity of $1 Amortization of Discount Stacy Company issued five-year, 7% bonds with a face value of $12,000 on January 1, 2017. Interest is paid annually on December 31. The market rate of interest on this date is 9%, and Stacy Company receives proceeds of $11,066 on the bond issuance. Required: Refer to the tables above for present value factors. 1. Prepare a five-year table to amortize the discount using the effective interest method. Round the last calculation as needed to bring bond to value. If required, round all calculations to the nearest dollar. Enter all amounts as positive numbers. Stacy Company Discount Amortization Effective Interest Method of Amortization Date Cash Interest 7% Interest Expense 9% Discount Amortized Carrying Value 1/01/17 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 Totals 2. What is the total interest expense over the life of the bonds? cash interest payment? discount amortization? Total interest expense Cash interest payment Discount amortization