1. What is the coupon (face) rate of the bond?
2. What is the effective interest rate of the bond?
3. Was the bond issued at a premium, discount or par? How did you determine your answer?
4. How much total interest expense will Figaro report on this bond in the year 2021?
5. On what financial statement would Figaro report the interest expense?
6. How will Figaro report the value of the bond on their 2021 Balance Sheet? Be specific.
7. What is the maturity value of the bond?

Figaro Company had the following information regarding a five-year bond that it issued on January 1, 2019. Cash Paid Interest Expense 4% Amount Amortized Carrying Value Date 3% 1/1/19 7/1/19 1/1/20 7/1/20 1/1/21 7/1/21 1/1/22 7/1/22 1/1/23 7/1/23 1/1/24 $21,000 $21,000 $21,000 $21,000 $21,000 $21,000 $21,000 $21,000 $21,000 $21,000 $25,729.96 $25,919.15 $26,115.92 $26,320. $26,533.38 $26,754.71 $26,984.90 $27,224.30 $27,473.27 $27,732.20 $4,729.96 $4,919.15 $5,115.92 $5,320.56 $5,533.38 $5,754.71 $5,984.90 $6,224.30 $6,473.27 $6,732.20 $643,249 $647,978.86 $652,898.01 $658,013.93 $663,334.49 $668,867.87 $674,622.58 $680,607.49 $686,831.78 $693,305.06 $700,037.26