EX$-9$B

On February $1,2021$ Giant Corp. issued an $$800,000,5\%,$ two$-$year bond. Interest is payable quarterly each May $1,$ August $1,$ November $1,$ and February $1.$

Required

Part $1$ Bond price: $$785,028$

a$.$ Calculate the bond issue price assuming a market interest rate of $6\%$ on the date of issue.

b$.$ Using the effective interest method, prepare an amortization schedule.

c$.$ Record the entry

Part $2$ Bond price: $$807,610$

d$.$ Calculate the bond issue price assuming a market interest rate of $4\mathrm{.}5\%$ on the date of issue.

e$.$ Using the effective interest method, prepare an amortization schedule.

f$.$ Record the entries