Santa Corporation issued a bond on January $1$ of this year with a face value of $$1,000.$ The bond's coupon rate is $7$ percent and interest

is paid once a year on December $31.$ The bond matures in three years. The annual market rate of interest was $9$ percent at the time the

bond was sold. The following amortization schedule pertains to the bond issued:

What was the bond's issue price?

Did the bond sell at a discount or a premium? How much was the premium or discount?

What amount$($s$)$ should be shown on the balance sheet for bonds payable at the end of Year $1$ and Year $2?$

Show how the following amounts were computed for Year $2$: $($a$)$ $$70,($b$)$ $$87,($c$)$ $$17,$ and $($c$)$ $$981.$

Complete this question by entering your answers in the tabs below.

What was the bond's issue price?

Did the bond sell at a discount or a premium? How much was the premium or discount?

What amount$($s$)$ should be shown on the balance sheet for bonds payable at the end of Year $1$ and Year $2?$