Question $3$ of $6$

$-/10$

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On July $1,2023,$ CWS Limited issued bonds with a face value of $$920,000$ due in $20$ years, paying interest at a face rate of $9\%$ on January $1$ and July $1$ each year. The bonds were issued to yield $10\%.$ The company's year$-$end was September $30.$ The company used the effective interest method of amortization.

Click here to view the factor table PRESENT VALUE OF $1.$

Click here to view the factor table PRESENT VALUE OF AN ORDINARY ANNUITY OF $1.$

$($a$)$

Using $1.$ factor Tables $2.$ a financial calculator, or $3.$ Excel function PV$,$ calculate the premium or discount on the bonds. $($Round factor values to $5$ decimal places, eg$.1\mathrm{.}25124$ and final answer to O decimal places, e$.$g$.5,275.)$

Discount

on bond

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