Bight Corporation issued $400,000 five-year bonds on April 1, 2011. Interest is paid semi-annually on April 1 and October 1 and the company's year end is March 31. Below is a partial amortization schedule for the first few years of the bond issue.

Instructions
(a) Were the bonds issued at a discount or at a premium?
(b) What is the bonds' face value?
(c) What will the bonds' amortized cost be at the maturity date?
(d) What is the bonds' contractual interest rate? The market interest rate?
(e) Identify what amounts, if any, would be reported as a current liability and non-current liability with respect to the bonds and bond interest accounts on March 31, 2013.
(f) What will be the total interest payment over the five-year life of the bonds? Total interest expense?
(g) Would your answers in part (f) change if the bonds had been issued at a discount instead of a premium or at a premium instead of a discount? Explain.

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Semi-Annual Interest Period Amortized Cost $418,444 416,721 414,972 Interest Payment Interest Expense Amortization April 1, 2011 October 1, 2011 April 1, 2012 October 1, 2012 April 1, 2013 October 1, 2013 April 1, 2014 $8,000 8,000 8,000 8,000 8,000 8,000 $6,277 6,251 6,198 6,143 $1,723 1,775 1,829 3 411,395 409,566 1,857