Pricing, Amortization and Redemption of Bonds Question: XYZ Co. issued a 15 year $200,000 Bond with coupon rate of 12% on January 1, 2020, Interest is paid semi-annually on June 30 and December 31. The market interest rate is 10%. (1) Calculate the issue price in dollar (2) Calculate the issue price as a percentage Hint: formula is: Selling price divided by Face of the bond times 100% Selling Price Face Value x 100% (3) Prepare amortization schedule using effective interest rate method 3a. Make journal entry to record interest expense for years 2020, 2021 and 2022 under the effective interest rate 3b. Make journal entry to record retirement of all (100%) of the bonds on January 1, 2023 at 95. 3c. Make journal entry to record retirement of half (50%) of the bonds on January 1, 2023 at95. (4) Prepare amortization schedule using straight line (SL) method 4a. Make journal entry to record interest expense for years 2020, 2021 and 2022 using the SL method 4b. Make journal entry to record retirement of all (100%) of the bonds on January 1, 2023 at 106. 4c. Make journal entry to record retirement of half (50%) of the bonds on January 1, 2023 at 106. (5) Assume interest is paid on July 1 and January 1. Prepare Journal entry to record the interest payments under the effective interest rate method for years 2020, 2021 and 2022 (6) Prepare the Partial Balance Sheet as of Dec. 31, 2021