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Problem 6 (15 marks) Assume Company A announces an offer to issue bonds on January 1, 2019 with a $100,000 par value, an 8% annual

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Problem 6 (15 marks) Assume Company A announces an offer to issue bonds on January 1, 2019 with a $100,000 par value, an 8% annual contract (coupon) rate paid semiannually and a 2 year life. Also assume YTM (Yield To Maturity) for company A bonds is 10%. 1- Calculate price of the bond. 2- Complete the following table using the effective interest method Date Cash interest payment Bond interest expense Discount amortization Unamortized discount Carrying value 1/1/2019 6/30/2019 12/31/2019 6/30/2020 12/31/2020

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