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Stein Corporation issued a $2,100 bond on January 1, year 1. The bond specified an interest rate of 9 percent payable at the end
Stein Corporation issued a $2,100 bond on January 1, year 1. The bond specified an interest rate of 9 percent payable at the end of each year. The bond matures at the end of year 3. It was sold at a market rate of 11 percent per year. The following schedule was completed: Use Table 9C.1, Table 9C.2. January 1, year 1 (issuance) December 31, year 1 December 31, year 2 December 31, year 3 Cash Paid Interest Expense Amortization Carrying Amount ? ? ? $ ? ? ? $1,997 $ 31 34 ? ? 38 ? Required: 1. What was the bond's issue price? (Round "PV factor" to 4 decimal places. Round the final answer to the nearest whole dollar.) Issue price 2-a. Did the bond sell at a discount or a premium? Discount O Premium 2-b. How much was the premium or discount?
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