On October 1 2014 Ambrilia Biopharma Inc issued a 750 000

On October 1, 2014, Ambrilia Biopharma Inc. issued a $750,000, 7%, seven-year bond. Interest is to be paid annually each October 1.

Required
a. Calculate the issue price of the bond assuming a market interest rate of 5%.
b. Prepare an amortization schedule similar to Exhibit 15.15 using the effective interest method.

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