Quatro Co. issues bonds dated January 1, 2019, with a par value of $870,000. The bonds annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 8%, and the bonds are sold for $892,789.

1. What is the amount of the premium on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare a straight-line amortization table for these bonds.

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• Required 2
• Required 3

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2
• Required 3

How much total bond interest expense will be recognized over the life of these bonds?

Total Bond Interest Expense Over Life of Bonds:
Amount repaid:
	payments of
Par value at maturity
Total repaid			0
Less amount borrowed
Total bond interest expense			$0

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2
• Required 3

Prepare a straight-line amortization table for these bonds. (Round your intermediate calculations to the nearest dollar amount.)

Semiannual Interest Period-End	Unamortized Premium	Carrying Value
01/01/2019
06/30/2019
12/31/2019
06/30/2020
12/31/2020
06/30/2021		0
12/31/2021