File Tools View Assessment exam== - Compatibility Mode 0 - 0 x === .386 3. Bond issue price and premium amortization. On January 1, 2018, Piper Co. issued ten-year bonds with a face value of $4,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are: Present value of 1 for 10 periods at 10% Present value of 1 for 10 periods at 12% .322 Present value of 1 for 20 periods at 5% .377 Present value of 1 for 20 periods at 6% .312 Present value of annuity for 10 periods at 10% 6.145 Present value of annuity for 10 periods at 12% 5.650 Present value of annuity for 20 periods at 5% 12.462 Present value of annuity for 20 periods at 6% 11.470 Instructions (a) Calculate the issue price of the bonds. (b) Without prejudice to your solution in part (a), assume that the issue price was $3,542,000. Prepare the amortization table for 2018, assuming that amortization is recorded on interest payment dates using the effective-interest method. Page 2 of 3 Display Settings D Focus L e 5:07 PM 1 - - + 127% 90 (1) 4/26/2020 33 Type here to search