1. On January 1, 20x1, Smith Company issued $15,000,000 of 30-year, 4% bonds, with interest payable annually on December 31 of each year. The bonds were sold at an effective rate of 2% for $21,718,937.
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3. a. How much interest will be paid to bondholders every year? 
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5. b. Consider the bond amortization schedule for 20x1 (the year of issuance). How much interest expense would be shown on the 20x1 income statement? Show your calculations
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7. c. Again consider the 20x1 amortization schedule. By how much would the premium or discount be amortized in 20x1? Show your calculations.
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9. d. Continue to consider the 20x1 amortization schedule. What would the carrying value of the bonds be on the 20x1 year-end balance sheet? Show your calculations.
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11. e. After the last annual interest payment and amortization of the discount or premium, what will the carrying value of the bonds be?