Calculate per year amortization of premium or discount

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Reference no: EM132730767

Mr. Humaira Ali Khushk issued most recently (1st January 2012) 9% bond payable in 5 Year with Annual Interest Payment on 1st January Every year. Par Value of Bond is Rs. 100,000 and Market or Competitors have issued similar risky bond on 7% interest rate per annum.

Required:

Problem 1: Calculate Market or Intrinsic Price of Bond.

Problem 2: With help of Market value and given data, calculate per year Amortization of Premium or Discount on Bond by straight line method.

Problem 3: Make all necessary Journal entries from January 01, 2012 to January 01, 2017.

Reference no: EM132730767

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