Determine the total discount or premium for each issue

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The initial proceeds per bond, the size of the issue, the initial maturity of the bond, and the years remaining to maturity are shown in the following table for a number of bonds. 

In each case the bond has a $1,000 par value, and the issuing firm is in the 40% tax bracket.
Bond Proceeds Size Initial Maturity Years RemainingPer Bond of Issue of Bond to Maturity

A $ 985 10,000 20 Years 15 Years
B 1,025 20,000 25 16
C 1,000 22,000 12 9
D 960 5,000 25 15
E 1,035 10,000 30 16

a. indicate whether each bond was sold at a discount, at a premium, or at its par value.
b. Determine the total discount or premium for each issue.
c. Determine the annual amount of discount or premium amortized for each bond.
d. Calculate the unamortized discount or premium for each bond.

Reference no: EM13990378

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