BOND PROBLEM FOR HOMEWORK

Bond Analysis

Year linc issued $4$ Year Bonds on January $1,2015$ with a face value of $$100,000,$ with interest paid annually. The face$/$stated rate of the bonds is $14\%$ and the market rate is $8\%.$ The principal is due in four vears.

Calculate the Bond Issuance, the Journal Entries for January $1,2015$ and December $31,2015,$ and the Effective Amortization Table$-($Next Page$),$ is this a Discount of a Premium to the Bonds?

TO CALCULATE THE BOND ISSYE$-$USE THE FOLLOWING TABLE

To calculate Bond issue Price$-$

Present Value of interest Payments and

Present Value of Principal