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Quatro Co. issues bonds dated January 1, 2019, with a par value of $400,000. The bonds' annual contract rate is 13%, and interest is paid
Quatro Co. issues bonds dated January 1, 2019, with a par value of $400,000. 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 $409.850. 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 effective interest amortization table for these bonds. Complete this question by entering your answers in the tabs below. Required i Required 2 Required 3 Prepare an effective interest amortization table for these bonds. (Round all amounts to the nearest whole dollar) Cash Interest Bond Interest Paid Expense Premium Amortization Semiannual Interest Period-End 01/01/2018 06/30/2019 Unamortized Carrying Value Premium $ 9.850 S 400,850 12/31/2019 06/30/2020 12/31/2020 06/30/2021 12/31/2021 Total
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