Exercise 10-7 Straight-Line: Amortization of bond premium LO P3 Quatro Co. issues bonds dated January 1, 2017, with a par value of $870,000. The bonds' annual contract rate is 9% and inter paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issue 8%, and the bonds are sold for $892,789. 1. What is the amount of the premium on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare an amortization table for these bonds; use the straight-line method to amortize the premium. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required a How much total bond interest expense will be recognized over the life of these bonds? Total Bond Interest Expense Over Life of Bonds: Amount repaid 6 payments al $ 35 712 5 Par value at maturity Total repaid 214.272 214,272 $ 4 8 7 5 2 3 W Y E R. s . D F V N B M 1. What is the amount of the premium on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bands? 3. Prepare an amortization table for these bonds: use the straight-line method to amortize the premium. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare an amortization table for these bonds, use the straight-line method to amortize the premium, (Round your Intermediate calculations to the nearest dollar amount.) Unamortized Premium Carrying Value Semiannual Interest Period End 01/01/2017 06/30/2017 12/31/2017 06/30/2018 12/31/2018 06/30/2010 12/31/2019 D Boa $ 8 7 2 3 5 8 W E R. T S D F. G H B N M