Question
On May 1, 2020, Ezzy Company issued a 6-year bond worth $400,000 with an interest rate of 8% per annum. Interest is to be paid
On May 1, 2020, Ezzy Company issued a 6-year bond worth $400,000 with an interest rate of 8% per annum. Interest is to be paid semi-annually on October 31 and April 30. At the time of the issuance, the market interest rate was 6%. Ezzy Company amortizes any premium or discount using the effective interest method. a) Calculate the bond issue price and the resulting premium or discount.2) Payment of interest and amortization of premium on October 31, 2020. 3) Accrual of interest and amortization of premium on December 31, 2020, which is the company's year-end4) Payment of interest and amortization of premium on April 30, 2021. I need the answers with all calculations please. by using the financial calculator.
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