Use the information in the amortization chart to answer the questions. Do not input $ signs or % signs. Whole numbers, no decimals.

The bonds pay interest semi annually on June 30 and Dec 31 and were issued on Jan 1, Year 1.

1. What is the carrying value of the bonds on Dec 31, Year 1?

2. What type of account is the carrying value in #1 (asset, liability, stockholders' equity, revenue or expense)?

3. What was the original issue amount of cash that the company received from bondholders on the issue date of January 1, Year 1.

4. Were the bonds originally issued at a discount, premium or par?

5. What is the ANNUAL market rate of interest (also called the effective rate or the yield)? (Remember that these bonds pay interest semi annually.)

6. Assume the bonds are called at a call premium of 2% on January 1, Year 2. Calculate the gain or loss on the call. If a loss, enter the amount in brackets.

Period	Interest Expense	Cash Interest	Carrying Value
1	69,811	90,000	3,470,349
2	69,407	90,000	3,449,756
3	68,995	90,000	3,428,752
4	68,575	90,000	3,407,327
5	68,147	90,000	3,385,473
6	67,709	90,000	3,363,183
7	67,264	90,000	3,340,446
8	66,809	90,000	3,317,255
9	66,345	90,000	3,293,600
10	65,872	90,000	3,269,472
11	65,389	90,000	3,244,862
12	64,897	90,000	3,219,759
13	64,395	90,000	3,194,154
14	63,883	90,000	3,168,037
15	63,361	90,000	3,141,398
16	62,828	90,000	3,114,226
17	62,285	90,000	3,086,510
18	61,730	90,000	3,058,241
19	61,165	90,000	3,029,405
20	60,595	90,000	3,000,000