A

B

C

D

E

F

G

$1$

$2$

$3$

$4$

$5$

$6$

$7$

$8$

$9$

$2$

$3$

$10\%$

Discount

$$19,567$

$2.$ How much total bond interest expense will be recognized over the life of these bonds?

Total Bond Interest Expense Over Life of Bonds:

Amount repaid:

payments of

$23$

$24$

Par value

Contract rate

Term

$10$ Market rate

$11$

$12$ Required:

$131.$ What is the amount of the discount on these bonds at issuance?

$14$

$15$

$16$

$17$

$18$

$19$

$20$

$21$

$22$

Par value at maturity

Total repaid

Less amount borrowed

$25$

Stanford issues bonds dated January $1$ of the current year, with a par value of $$257,000.$

The bonds' annual contract rate is $7\%,$ and interest is paid semiannually on June $30$ and

December $31.$ The bonds mature in three years. The annual market rate at the date of

issuance is $10\%,$ and the bonds are sold for $$237,433.$

$$257,000$

$7\%$

Issue price

Payments per year

$$237,433$

Total bo

l bond interest expense