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Presented below is an amortization schedule related to Buffalo Company's 5-year, $160,000 bond with a 7% interest rate and a 5% yield, purchased on
Presented below is an amortization schedule related to Buffalo Company's 5-year, $160,000 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2018, for $173,855. Date Cash Interest Received Revenue Bond Premium Amortization Carrying Amount of Bonds 12/31/18 $173,855 12/31/19 $11,200 $8,693 $2,507 171,348 12/31/20 11,200 8,567 2,633 168,715 12/31/21 11.200 8,436 2,764 165,951 12/31/22 11,200 8,298 2,902 163,049 12/31/23 11.200 8,151 3,049 160,000
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