oct19 - ex 6-13 bond accounting face value stated...

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ex 6-13 bond accounting face value 3,000,000 stated rate (coupon) pay interest 11.00%paid semiannua life of bond (term) 15 years Market rate of interest aka yield 10.00% when the issue price is higher than face value=> bond is issued at a premium when mkt rate is < stated rate=> premium amortization table n int amort O/S exp Pmt of prem liab 10% 11% diff '10%-11% 3,230,587 1 161,529 165,000 3,471 3,227,116 2 161,356 165,000 3,644 3,223,472 3 161,174 165,000 3,826 3,219,646 4 160,982 165,000 4,018 3,215,628 5 160,781 165,000 4,219 3,211,409 6 160,570 165,000 4,430 3,206,980 7 160,349 165,000 4,651 3,202,329 8 160,116 165,000 4,884 3,197,445 9 159,872 165,000 5,128 3,192,317 10 159,616 165,000 5,384 3,186,933 11 159,347 165,000 5,653 3,181,280 12 159,064 165,000 5,936 3,175,344 13 158,767 165,000 6,233 3,169,111 14 158,456 165,000 6,544 3,162,567 15 158,128 165,000 6,872 3,155,695
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16 157,785 165,000 7,215 3,148,480 17 157,424 165,000 7,576 3,140,904 18 157,045 165,000 7,955 3,132,949 19
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oct19 - ex 6-13 bond accounting face value stated...

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