Week 9 Bond Interest Post Assignment I. Bonds sold at a discount Issue date 5/1/13 Years to maturity 5 Interest paid Each 5/1 Nominal rate 4% annual Face amount $100,000 Sale price $98,000 Required: 1. Calculate the annual effective interest rate. 2. Provide an amortization table covering the 5 years of the bonds life. 3. Provide journal entries for issuance, interest accrual on 12/31/13, 1/1/14 reversing entry and 5/1/14 interest payment 4. Show December 31, 2013 balance sheet amounts for the bonds and related interest under the captions, current liabilities and long term liabilities