Hello,

Please explain the steps of the solution thoroughly. Thank you in advance for your time!

Bond contract rate = 7% semi-annual

Bond par = $10,000

Bond market rate = 6% semi-annual

Bond life = 10 years

1. Do the entry for the payment of cash interest per period

2. Do the entry for the amortization of the discount/premium per period

3. Find total interest expense per period

4. Show the balance sheet presentation of the bond after two periods have elapsed