On January 1, 2021, Jefferson School District issues $1,800,000 of 6% bonds, due in 8 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 7%, the bonds will issue at $1,691,160.

a) Confirm the bond issuance price and show your work.

b) Why are two different present value tables used to price the bond?

c) Is this bond issuing at a discount, premium or par? Explain your answer.

d) Create your own amortization table. The table should show the carrying value at January 1 as the first row. Include 3 full years of interest payments. Round all values to the nearest $1. Refer to the videos and text for amortization table examples.