Question: A firm issues its 5-year, 9%, $200,000 Par value bond. The market rate is 12%. The company uses the straight-line method to amortize bond premiums

A firm issues its 5-year, 9%, $200,000 Par value bond. The market rate is 12%. The company uses the straight-line method to amortize bond premiums and discounts. The bonds pay interest semi-annually.

Present Value Factor: 6%, n=10

Annuity Present value factor is 7.36009

Single sum Present value factor is 0.55839

What is the bond price?

Record the sale of the bond

Record the first interest payment

Record the second interest payment

Record the final payment of the Face Value

Prepare the amortization table

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