Determine when calculating the payment of interest

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On June 30, 2017, Mischa Auer

Company issued $4,000,000 face value of 13%, 20-year bonds at $4,200,920, a yield of 12%. Auer uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31

Question 1: When calculating the payment of interest and the amortization on the premium for Dec 31 2020. why do we have to divide amount by 2 ?

Reference no: EM132473490

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