On January 1, 2007, the company issued 20-year bonds with a face value of $300,000.

The bonds carry a coupon rate of 8% and the market rate for bonds issued by other companies

with similar risk was 6%.

Interest on the bonds is paid twice per year on June 1st and Dec 1st.

The Present Value Tables you will need are in the Files Section of your Canvas

A. Calculate the price of the bond using the present or future value tables provided. Worth 6 points

B. Using the effective interest method, make a table to cover interest payments through to the end

worth 4 points

C. Journalize the bond issue and the interest payment for June 1, 2008. Worth 2.5 points.

EFFECTIVE INTEREST AMORTIZATION TABLE