The inital proceeds per bond, the size of the issue, the initial maturity of the bond, and the years remaining to maturity are shown in the following table for a number of bonds. In each case the bon has a 1,00 par value, and the issuing firm is in the 40% tax bracket.

Bond Proceeds per bond size of issue initial maturity years remaining

A $985 10,000 bonds 20year 15years

B 1025 20,000 25 16

C 1,000 22,500 12 9

D 960 5,000 25 15

E 1035 10,000 30 16

a. Indicate whether each bond was sold at a discount, at premium, or at its par value.

b. Determine the total discount or premium for each issue.

c. Determine the amount of discount or premium amortized for each bond.

d. Calculate the unamortized discount or premium for each bond.

e. Determine the after-tax cash flow associated with the retirement now of each of these bonds, using the values developed in part (d)