ont Paragraph Question 4 (20 marks) On January 1, 2016, JetNew, issued $1,000,000 face value, 5-year bonds with a stated rate of at a effective rate of 4% which brought in $1,044,913. Interest is paid semi-annually on July 1 and December 31. JetNew uses the effective-interest method of amortization. Prepare the amortization table for the first 3 payment periods in the table below: Semi Annual Interest Date Interest Payment Interest Expense Premium Amortization Amount Premium Balance Carrying Amount 44913 40511 4102 Jan 1, 2016 July 1, 2016 Dec 31, 2016 July 1, 2017 25000 25000 25000 20898 20816 20733 1044913 1040811 1036627 1032360 1 4267 32360 Describe the two interest rates included in setting the price of a bond. SA