Calculating the Selling Price of a Bond The following facts relate to a bond that is being issued: Face Amount:.... ............. $2,000,000 Stated Annual Interest Rate: ... 9% Term:. ............. 10 years Interest Paid:................. Annually NOTE: You should use the present value tables provided on Canvas in the Modules section for the Bond chapter. A. If the effective annual interest rate is 10% when the bond is issued. What is the selling price of the bond? B. If the effective annual interest rate is 9% when the bond is issued. What is the selling price of the bond? C. If the effective annual interest rate is 8% when the bond is issued. What is the selling price of the bond? Bond Amortization Schedule and Entries The following facts relate to a bond that was issued: Face Amount: .......... $1,000,000 Stated Annual Interest Rate:. al Interest Rate: .......................... 6% Term:.. ........... 4 years Interest Paid: ............ .............. Annually Effective annual interest rate........................ 8% The bond sold for .... ..... $933,757.46 A. Prepare a Bond Amortization Schedule for the life of the bond. B. Prepare the following general journal entries for: 1. When the bond is sold. 2. Each year the cash interest payment is made. 3. When the bond matures. CHECK NUMBERS Selling Price of $2,000,000 bond when the effective rate is 10%: $1,877,102.60 Stated Cash Interest Payment for $1,000,000 bond: $60,000.00 Yr. 1 Interest Expense for $1,000,000 bond: $74,700.60 Yr. 2 Increase to Bond Liability for $1,000,000 bond: $15,876.64