On January 1, 2021, Waterfall Lodge & Amusement Park issued $6,000,000 of 6% bonds, due in 10 years. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually on June 30 and December 31 each year.

Bond Premium Problem: Assume that the market interest rate is 5.5% instead of 7%. Assume all other given amounts are the same as stated in the bond discount problem.

Stated interest rate per period

Interest payment in Cash every 6 months

Blue cells can be typed in, yellow cells must be formulas or functions.

Market interest rate per period

Note: Hover your mouse to any cell with a red flad in the upper right hand corner to read the hint.

Number of periods

The data for this bond can be found in the word document "instructions" in the lab 2 modules in Canvas

Issue price

Note: All cells in the table should be formulas or functions ( dont just enter text) except the date column. You can type those in if you want.

Date

Cash Paid for Interest

Interest Expense

Increase in Carrying Value

Carrying Value (End of Period)

1/1/21

-------

-------

-------

6/30/21