1. On January 1, 2009, MIC issued a six year bond payable with a $400,000 Face Value. The bond agreement calls for the bond interest to be paid annually on December 31. The stated interest rate in the bond agreement is 8%. The bond was issued when the market rate of interest was 12%.

Requirements:
1. Compute the issue price of the bond payable on 1/1/2009.
2. Prepare a bond amortization schedule for the bond payable for the life of the bond.