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Bond amortization w Effective rate
On July 1 2010 Atwater Corp issued 2,000,000 face value, 10% 10 year bonds at 2271813 Price resulted in an effective interest rate of 8% on the bonds. They use the effective interest method to amortize bond premium or discount. Bonds also pay semi annual interest on July 1 and January 1.
Prepare the amortization table through December 2012... This is the table I have so far but I think the last two columns are wrong because when I reach the 20th period they do not tie out. Semi - Annual Interest Periods Interest to be Paid Interest Expense Premium Amort-ization A - B Un-Amortized Premium D - C Bond Carrying Value 2 Million + D Issue Date 271813 2000000 1 100000 90873 9127 262686 2009127 2 100000 90507 9493 253193 2018620 3 100000 90128 9872 243321 2028492 |
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