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Please help, thanks! On January 1, 2019, Boomer Corp. issued bonds having the following characteristics: Face value: $300,000.00 Issue price: $287,525.09 Stated rate: 6% per
Please help, thanks!
On January 1, 2019, Boomer Corp. issued bonds having the following characteristics: Face value: $300,000.00 Issue price: $287,525.09 Stated rate: 6% per year Market rate: 7% per year Maturity: 5 years The bonds make semiannual interest payments on June 30 and December 31. Assume that the company uses the effective interest method. Construct an amortization schedule for the life of the bond. (Round to the nearest whole dollar. Do not manually input values. Use Excel formulas and cell references only.) Cash Interest Interest Expense Discount Amortization Carrying Valuc $287,525 Period Issue date 1 6/30/19 2 12/31/19 3 6/30/20 4 12/31/20 5 6/30/21 6 12/31/21 7 6/30/22 12/31/22 9 6/30/23 10 12/31/23 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 &Step by Step Solution
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