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Inc. issued a $150,000 of 5-year bonds dated January 1, 2015. The stated rate of interest (coupon rate) is 14% and pays interest semi-annually
Inc. issued a $150,000 of 5-year bonds dated January 1, 2015. The stated rate of interest (coupon rate) is 14% and pays interest semi-annually on June 30 and December 31. The annual market interest rate is 12%. The company uses the effective interest rate method of amortization. Oxford Inc.'s year-end is December 31. Required: A) Calculate the issue price of the bond. Required: B) Complete the amortization schedule for 2015. All 9 boxes in the table should be used. Show your work below the table. Round all calculations to the nearest $. Date Interest Payments Interest Expense Amortization of Discount or Carrying value/Book value of Bond Premium January 1, 2015 June 30, 2015 December 31, 2015
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