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On January 1 , 2016, Witherhart Company purchased bonds with a maturity value of S30,000 for $27,567 These bonds have a 6% per year
On January 1 , 2016, Witherhart Company purchased bonds with a maturity value of S30,000 for $27,567 These bonds have a 6% per year coupon rate payable semi-annually on June 30 and December 31. The bond matures on December 31, 2020 On January 1, 2016, the market yield for bonds of equivalent risk and maturity was 8% per year. Required Prepare an amortization schedule that shows the amortized cost of this bond at the end of each of the five years and the amount of interest income for each of those five years Complete the table below. (Round all amounts to the nearest whole dollar) Beginning amortized cost + Interest Income Coupon ment Ending amortized cost Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Year 4 Year 4 Year 5 Year 5 - Jun 30 - Dec 31 - Jun 30 - Dec 31 - Jun 30 - Dec 31 - Jun 30 - Dec 31 - Jun 30 - Dec 31
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