1. On January 1, 2018, GamePro, issued a $1,000,000 face value, 5-year bonds with a stated coupon rate of 5% at an effective rate of 4% which sold for $1,044,913. Interest is paid semi-annually on July 1 and December 31. GamePro uses the effective-interest method of amortization.

Prepare the amortization table for the life of the bond.

(Hint: the initial purchase and 1^st period interest payment has been provided)

Semi Annual		Coupon	Interest	Premium Amort		Carrying
Date		Payment	Expense	Amount		Amount
Jan-01 2018						1,044,913
Jul-01 2018		$25,000	$20,898	$4,102		1,040,811