Ike issues $110,000 of 9%, three-year bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. They are issued at $112,881. Their market rate is 8% at the issue date.

2.

Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life.

Amount Repaid ___? Payments of ____?

Per value at maturity____?

Total repaid__?

Less amount borrowe ____?

total bond Interest expanse _____?

3.	Prepare an effective interest amortization table for the bonds' first two years.