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On Jaruary 1, 2022, Cane tncorporated issued $1, 600,000 par value, 4%, 7-year bonds (fe, there were 1,600 of $1,000 par value bonds in the
On Jaruary 1, 2022, Cane tncorporated issued \$1, 600,000 par value, 4\%, 7-year bonds (fe, there were 1,600 of $1,000 par value bonds in the issue) Interest is payable semiameally each January 1 and July 1 woth the first interest payment due at the end of the penod on July 1 Determine the issue price of the bonds based on a 12% market rate of interest. Prepard the amortization table for the first 2 years assuming that Cane unes the effective interest rate mothod Devernine the issue price of the bonds. (Use the present value and fitume valus tables, the formula method, a financia calculatoc, or a spresidsheet for your calculations. If using present and future valige tables or the formula method, use factor amounts toundod to five decimal places, X. Round your final answor to the neavest whole dollac) The issue price of the bonds : Piopare the amortuation table for roundod value for each sukneminnt You answorod: 981.659 Cane uses the effective interest rate method (Round each calculation to the nearvst whoie number and then use the
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