On April 1, 2017, Ayayai Company sold 23,400 of its 11%,15-year, $1,000 face value bonds at 96. Interest payment dates are April 1 and October 1 , and the company uses the straight-line method of bond discount amortization. On March 1, 2018, Ayayai took advantage of favorable prices of its stock to extinguish 5,400 of the bonds by issuing 178,200 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash. The company's stock was selling for $31 per share on March 1, 2018. 2. Repeat requirement 1 above, assuming Ayayai Company uses the effective interest method of bond discount amortization (instead of the straight-line method). Also prepare an amortization schedule for the 15-year life of the bonds.