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Tahoe Tent Ltd. Issued bonds with a par value of $804,000 on January 1, 2017. The annual contract rate on the bonds was 14.00%, and
Tahoe Tent Ltd. Issued bonds with a par value of $804,000 on January 1, 2017. The annual contract rate on the bonds was 14.00%, and the Interest is paid semiannually. The bonds mature after three years. The annual market Interest rate at the date of issuance was 12.00%, and d the barics were sold for $843,535. a. What is the amount of the original premium on these bonds? (Use financial calculator for calculating PV's.) Premium b. How much total bond interest expense will be recognized over the life of these bonds? (Do not round Intermediate calculations. Round the final answer to the nearest whole dollar.) Total interest expanse these bonds; use the effective interest method of allocating the Interest and amortizing the premium. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the c. Present an amortization table amounts as positive values.) Cash Interest Pald Period Interest Expense Premium Amort. Unamortized Premium Carrying Value Period Ending Jan, 1/17 June 30/12 Dec. 31/17 June 30/18 Dec. 31:18 June 30/19 Dec. 31/19 Totals
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