On September 1, 2014, Messner Corp. issued a $400,000, 15%,

On September 1, 2014, Messner Corp. issued a $400,000, 15%, four-year bond. Interest is payable semi-annually beginning March 1, 2015.

Required
a. Calculate the bond issue price assuming a market interest rate of 13.5% on the date of issue.
b. Using the effective interest method, prepare an amortization schedule similar to Exhibit 15.15.

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