Question: Old School Vacations issued 100 000 10 10 year bonds on January
Old School Vacations issued $100,000, 10%, 10-year bonds on January 1, 2010, when the market rate of interest was 8%. Proceeds were $113,420.16. Interest is payable annually on January 1. Old School uses the effective interest method to amortize bond premiums and discounts. Prepare an amortization schedule for the life of the bonds.
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