Sunshine Pools purchased $100,000 of 12% BHT bonds on January 1, 2016, at a price of 107.5

Question:

Sunshine Pools purchased $100,000 of 12% BHT bonds on January 1, 2016, at a price of 107.5 when the market rate of interest was 10%. Sunshine intends to hold the bonds until their date of January 1, 2021. The bonds pay interest semiannually on each January 1 and July 1. Calculate the amount of premium amortization (using the straight-line amortization method) on July 1, 2016, and record the related journal entry. What is the total interest revenue for the first six months of 2016?
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...