On January 1, 2016, Bradley Recreational Products issued $200,000, 12%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $188,058 to yield an annual return of 14%

Prepare an amortization schedule that determines interest at the effective interest rate.

Payment Number	Cash Payment	Effective Interest	Increase in Balance	Carrying Value
1
2

Prepare an amortization schedule by the straight-line method.

Payment Number	Cash Payment	Recorded Interest	Increase in Balance	Carrying Value
1
2

3.

Prepare the journal entries to record interest expense on June 30, 2018, by each of the two approaches

Assuming the market rate is still 14%, what price would a second investor pay the first investor on June 30, 2018, for $28,000 of the bonds? what is the price of bonds?