Question: Cumming Corp. issues a $6,000,000, 5% bond on 1 April 20X3. At this time, market interest rates are in the range of 6%. The bond

Cumming Corp. issues a $6,000,000, 5% bond on 1 April 20X3. At this time, market interest rates are in the range of 6%. The bond had a 10-year life from 1 April 20X3, and paid interest semiannually on 31 March and 30 September.

Required:
1. Calculate the proceeds that would be raised on bond issuance.
2. Prepare an amortization table using the straight-line method of amortization. Complete the first four payments only.

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