Exercise 14-16 Amortization of bond premium 106 Page 971 CHECK FIGURE: a $1,583,802 (PV tables) or $1,583,736 (calculator; b. Total interest expense - $651,198 (PV tables) or $651,264 (calculator) On October 1, 2020, Ross Wind Energy Inc. issued a $1.500.000, 7%, seven year bond. Interest is to be paid annually each October I. Required a. Calculate the issue price of the bond assuming a market interest rate of 6% on the date of the bond issue. b. Using the effective interest method, prepare an amortization schedule similar to Exhibit 14.15