Questions

1) The value (not par value) of the bond at issue date is what?

2) AT each interest payment date cash is increased or decreased by this amount?

3) interest expense at the SECOND interest payment date is

4) amortization of the discount/premium at the THIRD interest payment date is

5) At the date of call the re-acquisition price of the bond is what?

Data

Number of bonds 3,000

 Effective interest rate 5%

Par value of each bond $3,000 

Interest Paid Per Year 2 times (semi-annual)

Stated interest rate 4% 

Payment dates January 1st, July 1st

Issue date 1/1/20X2 

Years to maturity 5 years

Due date 12/31/20X6

Call % 101%

Called on 1/1/X6 

Un-amortized at call date equals = $86735