Question: Problem: Bond contract rate = 7% semi-annual Bond par = $10,000 Bond market rate = 6% semi-annual Bond life = 10 years Do the entry

Problem:

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 (0.6 pts)
  2. Do the entry for the amortization of the discount/premium per period (0.6pts)
  3. Find total interest expense per period (0.3 pt)
  4. Show the balance sheet presentation of the bond after two periods have elapsed (0.6 pts)

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