On June 30, 2016, Singleton Computers issued 6% stated rate bonds with a face amount of $300 million. The bonds mature on June 30, 2031 (15 years). The market rate of interest for similar bond issues was 4% (2.0% semiannual rate). Interest is paid semiannually (3.0%) on June 30 and December 31, beginning on December 31, 2016. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required: 1. Determine the price of the bonds on June 30, 2016.

Table values are based on : n = 30, i = 2.0%

Cash Flow Amount Present Value

Interest

Principal

Price of Bonds_____________

2.	Calculate the interest expense Singleton reports in 2016 for these bonds using the effective interest method.
	Period-End Cash Interest Paid Bond Interest Expense Premium Amortization Carrying Value 6/30/16 12/31/16