1. On June 30, 2016, Singleton Computers issued 6% stated rate bonds with a face amount of $200 million. The bonds mature on June 30, 2031 (15 years). The market rate of interest for similar bond issues was 5% (2.5% semiannual rate). Interest is paid semiannually (3%) on June 30 and December 31, beginning on December 31, 2016. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required:

1. Determine the price of the bonds on June 30, 2016. n = 30 i =______

Cash Flow Amount Present Value Interest ___________ ______________ Principal ___________ ______________ Price of bonds _______________

Calculate the interest expense Singleton reports in 2016 for these bonds using the effective interest method

Period Ending Cash Interest Pd Bond Interest Expense Premium Amortization Carrying Value

6/30/2016 _____________

12/31/2016 ______________ _______________ ______________ _____________