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Need help fixing my problem Quatro Co. issues bonds dated January 1, 2019, with a par value of $400,000. The bonds' annual contract rate is
Need help fixing my problem
Quatro Co. issues bonds dated January 1, 2019, with a par value of $400,000. The bonds' annual contract rate is 13%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $409,850. 1. What is the amount of the premium on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare a straight-line amortization table for these bonds. Required 1 Required 2 Required 3 What is the amount of the premium on these bonds at issuance? Premium $ 9,850 How much total bond interest expense will be recognized over the life of these bonds? Total Bond Interest Expense Over Life of Bonds: Amount repaid: 6 payments of $ 26,000 S 156,000 Par value at maturity Total repaid 156,000 Less amount borrowed Total bond interest expense $ 156,000
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