Question
Quatro Co. issues bonds dated January 1, 2015, with a par value of $740,000. The bonds? annual contract rate is 13%, and interest is paid
Quatro Co. issues bonds dated January 1, 2015, with a par value of $740,000. The bonds? annual contract rate is 13%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $758,222. |
1. | What is the amount of the premium on these bonds at issuance? |
2. | How much total bond interest expense will be recognized over the life of these bonds? |
3. | Prepare an amortization table for these bonds; use the straight-line method to amortize the premium. (Round your intermediate calculations to the nearest dollar amount.) |
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