Jiahao She HW 9

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Part A Q1 $812,799.87 PV(0.075,4,-75000,-750000) 1/1/2015 Cash $ 812,799.87 Premium on bond payable $ 62,799.87 Bond payable $ 750,000.00 Q2 It sold at a premium because the market value is less than th 5.00% 3.75% Q3 Date Coupon Payment interest expense 1/1/2015 6/30/2015 $ 37,500.00 $ 30,480.00 12/31/2015 $ 37,500.00 $ 30,216.74 6/30/2016 $ 37,500.00 $ 29,943.62 12/31/2016 $ 37,500.00 $ 29,660.26 6/30/2017 $ 37,500.00 $ 29,366.27 12/31/2017 $ 37,500.00 $ 29,061.25 6/30/2018 $ 37,500.00 $ 28,744.80 12/31/2018 $ 37,500.00 $ 28,416.48 Q4 1/1/2015 Cash $ 812,799.87 Premium on bond payable $ 62,799.87 Bond payalbe $ 750,000.00 6/30/2016 Interest Expense $ 29,943.62 Premium on bond payable $ 7,556.38 Cash $ 37,500.00 12/31/2018 Interest Expense $ 28,416.48 Bond Payable $ 750,000.00 Bond Premium $ 9,083.52 Cash $ 787,500.00 Q5 6/30/2016 Bond Payable $ 790,940.23
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Part B Q1 $ 926,283.63 he stated value. Q2 It so amortization of premium book value Q3 Date $ 812,799.87 1/1/2016 $ 7,020.00 $ 805,779.86 12/31/2016 $ 7,283.26 $ 798,496.61
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