Question: Question 5 [17 points] A $3,000 five-year, 5% bond is sold to Beta Co. at a spot rate of 103. Please make sure your final

Question 5 [17 points] A $3,000 five-year, 5% bond is sold to Beta Co. at a spot rate of 103. Please make sure your final answer(s) are accurate to the nearest whole number. a) What is par value amount for this bond? Par value = $ 3,000 b) What is the issue price received for this bond? Issue price = $ 3,090 c) Are market interest rates lower than 5%, 5%, or higher than 5%? Market interest rates are higher than 5%. d) How much is the bond issuance discount/premium in this case? Discount/Premium = $ e) How much is the cash payment for annual interest? Cash payment=$ 150 f) What is the interest expense at the end of the first year following the bond's issuance if Beta Co. follows IFRS? Interest expense = $ g) What is the amount of the discount/premium amortized at the end of the first year if Beta Co. follows IFRS? Discount/Premium amortized = $ h) What is the amount of the discount/premium amortized at the end of the first year if Beta Co. follows the alternate method allowed by ASPE? Discount/Premium amortized = $ i) What is the carrying value for the bond payable at the end of the first year as follows? IFRS ASPE

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