Copi Corp. purchased a bond with a maturity value of $60,000 payable in five years. These bonds have a 7% coupon rate payable annually. Copi paid $65,195 for these bonds, giving a yield of 5%.

Requirement:

Prepare an amortization schedule that shows the amortized cost of this bond at the end of each of five years and the amount of interest income for each of those five years.

Year

Beginning Amortized cost

Interest income

Coupon payment

Ending amortized cost

1

2

3

4

5

37) Copi Corp. purchased a bond with a maturity value of $60,000 payable in five years. These bonds have a 7% coupon rate payable annually. Copi paid $65,195 for these bonds, giving a yield of 5%. Requirement: Prepare an amortization schedule that shows the amortized cost of this bond at the end of each of five years and the amount of interest income for each of those five years