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On October 1, 2020, Antonio Ranch Inc issued a $100,000,8%, 2-year bond. Interest is to be paid semiannually on October 1st & March 1st. 4

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On October 1, 2020, Antonio Ranch Inc issued a $100,000,8%, 2-year bond. Interest is to be paid semiannually on October 1st & March 1st. 4 5 Required: 6 A. Calculate the tee price of the bond assuming a market interest rate of 5% on the date of the bond me. (1 mark) B. Using the effective interest method, prepare an amortization schedule 5 marks) 8 C. Record the issuance of the bond on October 1, 2020 (3 marks) TO 12 Period Ending Cash Interest Period Interest Paid Expense Premium Amortization Unamortized Carrying Premium Value 7 3

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