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On January 1, 2021, Ivanhoe Satellites issued $1,120,000, 10-year bonds. The bonds pay semi-annual interest on July 1 and January 1, and Ivanhoe has a
On January 1, 2021, Ivanhoe Satellites issued $1,120,000, 10-year bonds. The bonds pay semi-annual interest on July 1 and January 1, and Ivanhoe has a December 31 year end. A partial bond amortization schedule is presented below:
Semi-Annual Interest Period | Interest Payment | Interest Expense | Amortization | Bond Amortized Cost | ||||||
Jan. 1, 2021 | $1,040,411 | |||||||||
July 1, 2021 | $ [1] | $ [2] | $2,814 | 1,043,225 | ||||||
Jan. 1, 2022 | 33,600 | 36,513 | 2,913 | 1,046,138 | ||||||
July 1, 2022 | 33,600 | 36,615 | [3] | 1,049,153 | ||||||
Jan. 1, 2023 | 33,600 | 36,720 | [4] | [5] | ||||||
July 1, 2023 | 33,600 | 36,830 | 3,230 | 1,055,503 | ||||||
Jan. 1, 2024 | 33,600 | 36,943 | 3,343 | 1,058,846 |
-Were the bonds issued at a premium or a discount?
What is the face value of the bonds?
What is the contractual rate of interest?
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