Woverine Corporation issued six-year, 5% bonds with a total face value of $1,000,000 on January 1, 2022. Interest is paid semi-annually on June 30 and December 31. The market rate of interest on this date was 6%. Wolverine uses the effective interest rate method.

Determine the proceeds of the bond sale on 1/1/22. Explain your method of calculation.

Did this bond sell at a premium or discount?

Using Excel, prepare a six-year bond amortization schedule for these bonds. There are examples in your notes and posted on D2L. Use formulas and reference cells in Excel to show how you calculate your numbers.