On January 1, 2020, Ivanhoe Corporation purchased a newly issued $1,625,000 bond. The bond matured on December 31, 2022, and paid interest at 6% every June 30 and December 31. The market interest rate was 8%. Grouper’s fiscal year-end is October 31, and the company had the intention and ability to hold the bond until its maturity date. The bond will be accounted using the amortized cost model. Prepare an amortization schedule for the bond and calculate the price paid for the bond using a financial calculator or Excel functions.

Answer rating: 100% (QA)

Face Value 1625000 Semi annual period 6 Semi annual interest payment 48750 Semi annual market int... View the full answer