This Corporation issued the following bonds:

$4,000,000

8%,NC, Due December 31^st, 2022

Semi-annual pay: July 1^st and January 1^st

Issue Date: January 1^st, 2019

Additional Information:

Corporation has a December 31^st year-end

Corporation uses the straight-line method to amortize any discount or premium on outstanding debt

Because of poor marketing efforts by the deal underwriter, no bonds were sold until February 1st, 2019, at that time the entire issue was sold

Instructions

For each of the following environments/markets provide the answers to 1), 2), 3)

and 4).

6% environment/market

8% environment/market

10% environment/market

1)Provide the pricing at issue

2)What was the dollar amount of the bond discount at issue?

3)What was the dollar amount of the bond premium at issue?

4)What was the JE made by Tony Stark Corporation on the issue date?

Use this chart for your answers:

$ Price@ issue $ Discount@ issue $ Premium@ issue JE made on Issue Date

6%

8%

10%