Question 4 (20 marks) On January 1, 2016, IstNew, issued $1,000,000 face value, 5-year bonds with a stated rate of 5% at an effective rate of 4% which brought in $1,044,913. Interest is paid semi-annually on July 1 and December 31. IetNew uses the effective interest method of amortization. Prepare the amortization table for the first 3 payment periods in the table below: Semi Annual Interest Date Interest Payment Interest Expense Premium Amortization Amount Premium Balance Carrying Amount Jan 1, 2016 July 1, 2016 Dec 31, 2016 July 1, 2017 Describe the two interest rates included in setting the price of a bond