he ALine Company acquired a $6 million face value bond that has an 8% coupon rate(pays interest annually on December31) on January1, 2017. The bond matures on December31, 2022. On January1, 2017, the market yield for bonds of equivalent risk and maturity was 6%.

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Requirement a. How much did ALine pay for this bond on January1, 2017? (Enter all currency amounts indollars, not in millions. Use a financial calculator for all present value computations. Enter your final answer as a positivenumber, and round to the nearest wholedollar.)

Amount required to purchase bonds

Requirement b. On December31, 2017, the market yield for bonds of equivalent risk and maturity is 7%. What would be the market value of this bond on December31, immediately after the coupon payment on thatdate? (Enter all currency amounts indollars, not in millions. Use a financial calculator for all present value computations. Enter your final answer as a positivenumber, and round to the nearest wholedollar.)

Market value of bonds on Dec. 31, 2017

Requirement c. On December31, 2018, the market yield for bonds of equivalent risk and maturity is 8%. What would be the market value of this bond on December31, immediately after the coupon payment on thatdate? (Enter all currency amounts indollars, not in millions. Use a financial calculator for all present value computations. Enter your final answer as a positivenumber, and round to the nearest wholedollar.)

Market value of bonds on Dec. 31, 2018

Requirement d. Assume each of threescenarios: the bond is to be(i) amortizedcost, (ii)FVOCI, or(iii) FVPL:(1)How much would the balance sheet value of this bond be on December31, 2017, and December31, 2018? (2)How much income would be reported in 2017 and 2018 for thisbond? (3)How much would OCI and accumulated OCI be for fiscal years 2017 and 2018?

Before answering any of these threequestions, let's complete an amortization schedule for the bond through December31, 2018. (Round to the nearest wholedollar.)