Question: A) Prepare a Premium Bond Amortization Table based on the following Given information: Soda Corporation issued a 4.0%, 30-year bond, dated January 1, 2022 with
A) Prepare a Premium Bond Amortization Table based on the following Given information:
Soda Corporation issued a 4.0%, 30-year bond, dated January 1, 2022 with a face value of $5 million on January 1, 2022. The market yield for bonds of similar risk and maturity was 3.8%. Interest is paid to investors semiannually on June 30 and December 31.
B) Prepare a Discount Bond Amortization Table with the following Given information:
Forma Corporation issued a 4.1%, 25-year bond, dated January 1, 2022 with a face value of $7 million on January 1, 2022. The market yield for bonds of similar risk and maturity was 4.15%. Interest is paid to investors semiannually on June 30 and December 31.
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