On January $1,2027,$ Ivanhoe Industries Inc. issued $$5,800,000,8\%$ bonds. Interest is payable semi$-$annually on June $30$ and December $31.$ The bonds mature on January $1,2034.$ The bonds are sold to yield $12\%.$

Calculate the issue price of the bonds.

$($Round factor values calculations to $5$ decimal places, e$.$g$.2\mathrm{.}55555$ and final answer to $0$ decimal places, e$.$g$.25,000.)$

Question: Issue price of bond $ $\_\_\_\_\_\_\_\_\_\_$

Prepare the amortization table for the first year, assuming the effective interest method is used to calculate interest. $($Round answers to $0$ decimal places.$)$

$|$ Date $|$ Cash Interest $|$ Interest Expense $|$ Discount Amortized $|$ Carrying Value of Bonds $|$ On January $1,2027,$ Ivanhoe Industries Inc. issued $\backslash (\backslash$$ $5,800,000,8\backslash \%\backslash )$ bonds. Interest is payable semi$-$annually on June $30$ and December $31.$ The bonds mature on January $1,2034.$ The bonds are sold to yield $12\backslash \%.$

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Correct Answer

Your answer is incorrect.

Calculate the issue price of the bonds. $($Round factor values calculations to $5$ decimal places, e$.$g$.2\mathrm{.}55555$ and final answer to $0$ decimal places, e$.$g$.25,000.)$

Issue price of bond $\backslash$$

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Solution

Your answer is partially correct.

Prepare the amortization table for the first year, assuming the effective interest method is used to calculate interest. $($Round answers to $0$ decimal places, e$.$g$.25,000.)$