Swifty Corporation issued $510,000, 7%, 20-year bonds on January 1, 2022, for $459,929. This price resulted in an effective-interest rate of 8% on the bonds. Interest is payable annually on January 1. Swifty uses the effective-interest method to amortize bond premium or discount. 1 2

Interest Periods

Interest to Be Paid

Interest Expense to Be Recorded

Discount Amortization

Unamortized Discount

Bond Carrying Value