QUESTIONS #$1$

On January $1,20$XX$,$ JetNew, 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

$31.$ JetNew uses the effective$-$interest method of amortization.

Prepare the amortization table for the first $3$ payment periods.