Question: Armstrong Corp. purchased a bond with a maturity value of Si 0,000 payable in five years. These bonds have a 6% coupon rate payable annually.

Armstrong Corp. purchased a bond with a maturity value of Si 0,000 payable in five years. These bonds have a 6% coupon rate payable annually. Armstrong paid $10,890 for these bonds, giving a yield of 4%.
Required:
Prepare an amortization schedule that shows the amortized cost of this bond at the end of each of five years and the amount of interest income for each of those five years.

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