Riverbed Corp. invested in a three$-$year, $$100$ face value, $7\%$ bond paying $$85\mathrm{.}83.$ At this price, the bond will yield a $13\%$ return. Interest is payable annually. Riverbed uses the amortized cost model of accounting for investments.

Your answer is partially correct.

Prepare a bond discount amortization table for Riverbed, assuming Riverbed uses the effective interest method required by IFRS. $($Round answers to $2$ decimal places, e$.$g$.52\mathrm{.}75.)$

Bond Discount Amortization Table

Cash Received

Interest Income

Bond Discount

Amortization

Amortized Cost of Bond

$

$85\mathrm{.}83$

$

$13\mathrm{.}00$

$

$4\mathrm{.}72$

Question $7$ of $7$

$\frac{1\mathrm{.}65}{7}$